Fed Keeps Rates Steady as Inflation and Growth Expectations Adjust
- US inflation projected at 2,8%.
- Economic growth revised to 1,7%.
- Interest rates maintained between 4,25%-4,5%.
In a decision that underscores caution amid an uncertain economic environment, the Federal Reserve opted to keep interest rates unchanged in the 4,25%-4,5% range during its latest meeting. This pause in monetary policy follows three consecutive reductions late last year, highlighting a “wait and see” approach to future adjustments.
Federal Reserve Chairman Jay Powell reiterated that the institution will remain vigilant, monitoring the effects of current policies on the U.S. economy before making further rate changes. This stance reflects an adaptive response to recent estimates that point to an increase in inflation projections and a reduction in expected economic growth for this year.
As updated by the Fed, inflation, as measured by the Personal Consumption Expenditures (PCE) index, is now expected to reach 2,8%, up from the previous forecast of 2,5%. In addition, US economic growth is projected to slow, with an annualized expansion of just 1,7%, in contrast to the previous estimate of 2,1%. The unemployment rate, in turn, is expected to increase slightly, from 4,3% to 4,4%.
These revisions reflect a range of challenges and uncertainties facing the central bank as it tries to balance sustainable growth with controlling inflation. The Fed has shown prudence in its approach, adjusting its expectations in response to a global economic outlook that continues to evolve.
At the time of publication, the price of Bitcoin was quoted at US$84.017,41, up 3% in the last 24 hours.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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