As expected, the Federal Reserve of the United States left its range of funds from the reference Fed in constant 4.25% -4.50% on Wednesday, the second consecutive pause from three cuts of straight rates to finish 2024.
However, the quarterly economic projections of the FED showed a strong decrease in the expectations of economic growth, with the increase of GDP in 2025 now seen in only 1.7% versus 2.1% in the December forecast. The growth prospects for 2026 and 2027 were also cut.
“The uncertainty about economic perspectives has increased,” said the Fed in an accompanying statement, which is probably a reference to the tumult that surrounds the tariff regime threatened by President Trump.
Together with the deceleration of growth, central PCE inflation is now seen in 2.8% this year versus the previous projection of 2.5%. The central inflation prospects for 2026 and 2027 were left at 2.2% and 2.0%, respectively.
The “plot of points”, which shows the perspectives of FOMC members on where interest rates could be headed, still see that the Fed fund rate that ends this year at 3.9%, as well as the December forecast. Fed Fed Fed Fed Fed rates for 2026 and 2027 continue to project at 3.4% and 3.1%, respectively.
The Fed also said that it would begin to stop the rhythm of the runoff of values from its balance, the so -called quantitative tightening, as of April 1. The decrease in the role of the treasure will be cut to only $ 5 billion of $ 25 billion before.
Bitcoin (BTC) was volatile in the minutes immediately after the launch, but headed lower at the time of publication to $ 83,500 against just above $ 84,000 before the news.
US actions continue to have solid profits and 10 -year treasure performance has dropped two basic points to 4.28%. The gold, the star in recent times among the asset classes, remains close to a record of $ 3,048 per ounce.
Risk assets have been defeated in recent weeks, since the growing concerns about the tariff threats of President Trump and its perceived impact on inflation and economic growth weighed in the feeling of investors. The Fed that turned to Hawkish at the December and January meetings also annulled the hopes of faster financial conditions for winds against winds against cryptocurrencies and shares.
The president of the FED, Jerome Powell, will speak at 2:30 pm Eastern time (18:30 UTC) with merchants who monitor the press conference to obtain new clues of the perspective of the political leaders on monetary policy.
