Fed Ends Streak Of Rate Cuts, Entering ‘Wait And See’ Phase | Global News Avenue

The Fed’s Policy Committee voting has stabilized its key interest rates in Wednesday because of stubborn inflation and elastic labor markets in recent months to curb the appetite of central banks to reduce borrowing costs.

As the financial market is generally expected, Federal Public Marketing Committee hold Feed capital interest rate At a meeting on Wednesday, its range was 4.25 % to 4.5 %, which ended the decrease of three consecutive victories. The Federal Reserve’s capital interest rate has affected the cost of borrowing of various loans, and has now exceeded 20 years of percentage points. This point has been fighting for inflation over the past year. However, Fed officials still believe that this is “restricted”, or high enough to prevent borrowing and expenditure, as well as obstacles to the economy.

After economic data showed that the inflation rate was reduced to the annual target of the Central Bank 2 %, Fed officials reduced their rates in the second half of last year. At the same time, the labor market is weakening and the unemployment rate is rising. Both trends encourage the Federal Reserve to reduce interest rates to improve the economy and save the labor market, because the Fed’s pursuit “Dual task“Use monetary policy to promote sufficient employment and low inflation.

But since then, inflation Get more and more solidEssence Fed officials also pay attention to the tariffs on foreign trade proposed by President Donald Trump, which may increase consumers’ prices and increase inflation according to their implementation. At the same time, the unemployment rate has been stable, Reduce urgency Reduce rate rate.

The committee said in a statement: “In recent months, the unemployment rate is stable at a low level, and the labor market is still stable.” “Inflation is still a bit improved.”

The statement issued on Wednesday is similar to the latest meeting in December, but it has canceled the mention of rising unemployment rates and inflation, and has made progress.