
Bloomberg/GettyAmerican people and companies have faced the whirlwind of policy change in recent months. However, the cost of borrowing set by the US Central Bank was maintained in a fixed state.
The Federal Reserve Bank adhered to the strategy on Wednesday, and the main interest rate did not change even if the expectation of the economy’s economy deteriorated.
The ruling was fourth without action, and the bank’s influential loan rate was about 4.3%since December.
Despite the forecast of policymakers, it suggests that inflation was expected to grow, unemployment and faster inflation than months ago.
In general, if the Fed believes that the economy is having difficulty, the cost will increase the cost when the price begins to rise too quickly.
Inflation, which is the speed of price increase, is 2.4% in May, higher than the Fed’s 2% goal.
President Donald Trump repeatedly urged the Fed, claiming that the interest rate was partially lost.
But officials who can make policies independently of the White House will make a decision based on data.
They said they wanted more information about increasing prices due to tariffs and other policies, and to slow down the US economy.
In the interest rate announcement, the bank said that the economy had a “solid” state in general.
However, policymakers announced the project that the average policy makers, which were reduced in March, were expected to slow to 1.4%this year.
This prediction required inflation of about 3%from 2.7%predicted in March and the unemployment rate increased to 4.5%.
Prior to the Fed’s decision, Trump repeated his criticism of the Fed Chairman Jerome Powell and called him “stupid” and speculated about his term.
The European Central Bank has lowered its interest rates eight times since June. The British bank cut the borrowing cost last month, but is expected to have a steady interest rate this week.
But ISAAC Stell, an investment manager of Wealth Club, said Trump said, “Trump can be a little binding.”
“Central bankers tend to be jealous of their independence. This means that if there is no reason to cut it, it can sit on the fence.”
Interest decisions determine the bank’s claim for short -term loans.
This ratio has a big impact on the cost of borrowing throughout the economy, and it tells us that regular banks are imposed on furniture and businesses on mortgage and other types of loans.
At 4.3%, the Fed’s benchmark interest rate remains significantly higher than in 2008 and 2022 when the bank begins to raise interest rates.
However, the percentage is roughly lower than that of last year.










