As expected, the Fed leave the Interest rates unchanged In the interval 4,25-4.50% and resists the pressing of Trump who, while the meeting of the Central Bank was underway, defines President Jerome Powell Uno “stupid”.
Fed, unchanged rates. Ara of Trump
While not touching the cost of moneythe Central Bank confirms its intention of wanting to reduce thisnno rates of a total of 50 basis points, with two scissors From a quarter of point. The uncertainties But there are many and, even if only compared to March, the belief of being able to proceed with two reductions is disavowing: seven components of the FED estimate that there will be no loosening this year compared to four last March. Two others instead aim for a single reduction in the cost of money. To predict two scissors are eight, less than nine of a few months ago.
2 cuts planned in 2025
“The economy is in a solid position”said Powell ensuring Fed’s commitment to pursue the achievement of its two objectives, those of price stability and maximum employment. The effects of the “changes in commercial and budget policies remain uncertain” and the monetary policy of the Fed remains “well positioned” to wait more information before deciding the next moves, he added.
Definitely calm, the president of the Fed did not appear touched by attacks dThe Trumps who, after calling him a “stupid”, ironized: “Can I appoint myself to the Fed alone? I would certainly do a better job.”
The comments of analysts
“Today’s meeting of the FOMC has had an accommodating tone, with the Dot Plot that continues to report two rates cuts this year, despite the revisions when the short -term inflation forecasts are raised by the members. Implicitly, the members of the FOMC continue to expect that the highest inflation in the short term be largely transitory, and their tolerance towards an increase in unemployment remains low. We expect the Fed to keep unchanged rates At the meeting next month, but we believe that a path can be opened towards the resumption of the loosening cycle later this year, if the labor market weakened “, underlines Simon Dongor, Head of Fixed income macro strategies of Goldman Sachs Asset Management.
“Fed’s decision to keep rates unchanged underlines the delicate balance that must face in a context characterized by persistent inflation, slowdown in US growth and greater political uncertainty “, explains Robert Lind, Economist of Capital Group. “Although the duties and geopolitical tensions have weighed on sentiment and economic activity, we believe that this is the time to remain concentrated on long -term fundamentals. The story shows that the markets are able to adapt and recover, even in the face of significant disturbances. In this context, we continue to adopt a measured approach, favoring time and not the time and not the time Market Timing, And we remain anchored to a disciplined analysis and the buttons to navigate through the volatility and identify lasting opportunities “.
