The federal reserve has reduced its American growth forecasts and has raised its projection of inflation, stressing the concerns that Donald Trump prices and the deep reductions in government agencies will make the world’s largest economy eliminate.
The last set of projections of the Fed has shown that officials are now expecting the GDP to 1.7% of GDP this year, the expected prices of 2.7%. Political decision -makers also kept the main interest rate of the central bank on Wednesday at the end of a two -day meeting.
The president of the FED, Jay Powell, recognized that journalists after the president’s plan to hit trade partners and other countries with radical tariffs had affected the prospects for the inflation of the central bank for inflation and the economy.
“Obviously, part of this, a good part of it,” is linked to the impact of Trump’s prices, said Powell. He also said that the FED “no need to be in a hurry” to move rates by giving “unusually high” uncertainty.
Progress of inflation has been “probably delayed at the moment,” said Powell.
The FED also announced that it slowed down the pace of its quantitative tightening program, reducing the amount of debt from the US Treasury, it allows you to exceed its balance sheet each month from $ 25 billion to $ 5 billion from April.
American shares have reached their day summit following the Fed decision, the S&P 500 increasing more than 1% and the Nasdaq composite heavy of technology jumping almost 2%.
The Debt of the United States government has also rallied, pushing the yield of the treasury to 10 years of reference down 0.04 percentage points to 4.25%.
