The Fed’s Two-Day Policy Meeting Kicked Off Tuesday—What You Need To Know | Global News Avenue

First Federal Public Marketing Committee (FOMC) After the US economy completed stable employment and stubborn inflation in 2024, this year’s meeting began on Tuesday.

The Fed’s policy formulation team is discussing the progress of the Fed’s cracking down on inflation and whether it has reduced its influence Federal fund interest rateEssence Their decision is scheduled to be released at 2 pm on Wednesday. Federal Reserve Chairman Jerom Powell It will provide more details at the press conference at 2:30 pm and answer the question and answer questions

The Federal Reserve can be traced back to September in the past three meetings, reducing its benchmark rate, and it is expected that the Fed will not be trimmed at this meeting. After the last meeting, the Fed warned that the pace may slow down due to continuous inflation pressure.

Since the Federal Reserve’s December meeting, economic changes have not changed much. However, the uncertainty of the economic policy of the new government is increasing, which may make the Fed’s observer more carefully reviewing the FOMC meeting statement and Powell’s comments than usual.

The economy remains stable …

There is a Federal Reserve Dual task Promote the stability of prices and maintain maximum employment. The inflation after the popularity caused the Fed to reduce interest rates at a high level of ten years before the Fed began to reduce it last fall. At that time, people were worried that the unemployment rate rose.

According to the latest data, inflation in December Still stubbornBut Fed officials say they are Confidence it is still A year reaches 2 %.

Thomas Barkin, president of the Lisz Federal Reserve Bank, said earlier this month: “The dissolution process is still on the train.”

As for the labor market, the employer is surprising Added 256,000 jobs In December, he defeated the expectations of economists for 155,000.

… interest rate may also

Because in the struggle with inflation, there are almost no extensive unemployment and progress threats, economists and market participants generally expect the Federal Reserve It will maintain the interest rate of its influence It did not touch Wednesday.

According to the CME Group’s FedWatch tool, the tool predicts changes in interest rates based on Federal Reserve’s futures transaction data. As of Tuesday, 97.3 % of the opportunities of the committee will have the current range of Federal Reserve’s capital interest rates from 4.25 % to 4.50 %.

Federal Reserve member itself Similar predictions in DecemberEssence Most FOMC members predict that they will only reduce the federal funds interest rate by 50 by 50 Base point This year-they cut in 2024.

Trump’s policy leads to uncertainty

Economists and Fed officials said that if President Donald Trump promulgated some economic policies he proposed, the planned reduction of inflation may change.

tariffIn particular, it can change the economic prospects of the United States. After the Federal Reserve Conference in December, Powell said the committee Slow movement to reduce slowing down Part of the reason is that these trade policies will look like.

Tariff It is not worth noting the execution command Trump signed on the first day of his office. However, he did say tariffs Can be implemented And February and February. 1

This is the first FOMC meeting under Trump’s second government. However, Trump and Powell are available Back collision courses Since the presidential election. Trump threats The independence of the Federal Reserve During the campaign, Powell insisted Central Bank is exempted from presidential controlEssence

Just last week, Trump Tell the world economic leader’s party If the price of oil falls, he will “require the interest rate immediately.”