In times of rapid political revolution in the US, the American Federal Reserve did not affect the most important interest. The currency keepers around Fed boss Jerome Powell left the most important rate of monetary policy in the reach of 4.25 to 4.50 percent on Wednesday. The growth ear spelling is currently reduced.
In the United States there is concern that the American economy could slide into a recession due to the whimsical customs policy of Trump. A consequence of import tariffs is that goods imported from abroad cannot be produced immediately in the United States. You would therefore automatically become more expensive. Moreover, American companies can also increase their prices with a view to lower competition from abroad. Rates against Canada, Mexico and China and Staal and Aluminum import were recently imposed. At least the rates for goods from Canada and Mexico took back Trump.
Trump’s last statements are interpreted in such a way that the president no longer excludes recession. Typical characteristics of an economic decline increase unemployment, falling consumption, falling investments and general economic uncertainty.
The growth ear spelling reduced
The Central Bank has now also published its new economic prediction for the United States – and is more pessimistic than three months ago. The gross domestic product (GDP) of the largest economy in the world will grow by 1.7 percent this year (December: 2.1 percent).
The expectation of inflation has increased somewhat
The central bankers adhere to their interest rates. The decision of the FED makers expect an important interest of 3.9 percent on average in 2025. This will indicate two small interest steps this year. Trump has imposed high rates on goods from different countries since he took office. The uncertainty about the possible consequences of the aggressive approach is one of the strongest winners and can slow down growth. The task of the FED is to keep inflation under control. It strives for an inflation of 2 percent.
For this year, central bankers now expect an average of 2.7 percent – so it is slightly higher than previously assumed. In December the prediction was 2.5 percent. Core inflation, ie without taking into account food and energy prices, must be 2.8 percent this year (December: 2.5 percent). In their analysis, the central bankers mainly look at this value. In the opinion of experts, he reflects the general price trend better than the total rate, because components that are susceptible to fluctuations are deducted.
Source: Krone
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
