The Federal Reserve keeps the interest rates steadily, but the view for economic growth is affected

The Federal Reserve kept its benchmark interest stable on Wednesday. The chairman Jerome Powell said that there is “high uncertainty” on the potential effects of the Trump government’s trade and other economic policy.

“The uncertainty about the economic prospects has increased,” said the Fed in its announcement. “The committee would be willing to adapt the attitude of monetary policy after adequate adjustment if there are any risks that could hinder the achievement of the goals of the committee.”

The FED now expects the economy grow more slowly this year than three months ago. Unemployment in the United States is expected to achieve 4.4% 4.1% in Februaryalso published on Wednesday after business forecasts. The central bank predicts inflation up to 2.7%compared to the current level of 2.5%.

Political decision -makers now expect that the gross domestic product of the country – the overall production of goods and services – will be expanded by 1.7% this year compared to their forecast of 2.1% in December. In 2024, GDP rose by 2.8%.

“Inflation has started to rise,” said Powell at a press conference. “We sometimes think in response to tariffs. And further progress can occur in the course of this year.”

Powell’s base case in the fact that an increase in inflation that results from the tariffs “would be transition”, but later it said it would be difficult to separate how much price increases from tariffs are due to other factors.

Recession contraryness “extremely low”

Economists warned that the aggressive trade policy of the Trump government, including steep tariffs in Canada and Mexico, which should become effective on April 2, could increase inflation and weigh up the economic activity.

“The likely direction of the trip to the policy of Trump administration, the FOMC participants revised their forecasts for inflation and at the same time revised their projections for GDP,” said Stephen Brown, deputy chief north -America economist with capital economist.

The chances of a recession “were extremely low – when they go back for two months. It has increased, but it is not high,” Powell told reporters.

Investors had practically no chance of the Federal Open Market Committee (FOMC), the interest rate panel of the central bank, which lowers interest rates this month. President Trump’s aggressive trade policy, who have triggered concerns about economic growth, have also strengthened uncertainty for the financial markets.

“What keeps the FOMC from reducing interest rates at this moment is the uncertainty about the Trump government’s economic policy,” wrote Carl Weinberg, chief economist in high -frequency economy, on Wednesday in a research note before the decision of the Fed.

The FED said that it would maintain the federal fund rate in the current range of 4.25% to 4.5%.

The so -called point diagram of the central bank, which is used by the FED to specify its prospects for the guidance of interest rates, states that the median projection of the year 2025 for the Federal Fund Keating at 3.88%and signals 50 basis points this year.

Most economists expect the FED to reduce interest rates this year two or three times, although this depends on inflation and continues to approach the annual goal of the central bank.

Shares added to modest profits After the FOMC decision and the Powell, the benchmark indices spoke all about 1% or more.

contributed to this report.