It happened after the American monetary authority decided to maintain stable interest rates, in the range of 4.25%-4.5%.
The president of the United States, Donald Trump, reiterated on Thursday his calls to the Federal Reserve (FED) to cut the interest ratesstating that these should be 2.5 lower percentage points. Despite the repeated pressures by the American Executive Power, the monetary authority maintains the caution due to the potential inflationary risk of the tariffs implemented by the Republican president.
“Jerome Powell is costing our country hundreds of billions of dollars …. We should be 2.5 lower points“He said in a publication on the social Truth Network, referring to the president of the Federal Reserve.
On Wednesday the Fed maintained the reference rate to one day without changes, in the range of 4.25% to 4.5%. Anyway, monetary managers seek to reduce the cost of indebtedness at half a percentage point throughout the year, although the forecasts of a higher inflation may delay the pace of the cuts.
The Fed foresees a stanflation panorama in the US
The quarterly economic projections of the United States Central Bank showed a Panorama slightly staplationistwith a deceleration of 1.4%growth, an increase in 4.5%unemployment and inflation of 3%, much higher than the current one.
According to new estimates, Inflation will remain high at 2.4% to 2026before falling to 2.1% in 2027, in a practically stable unemployment context.
“The uncertainty about economic perspectives has decreased, but it is still high”, The Federal Reserve said in its last monetary policy statement, a modification of the May writing, at a more turbulent moment of the commercial debate.
So far, however, “the unemployment rate remains low and Labor market conditions remain solid“The Fed said in its statement, unanimously approved.
The text did not mention the sudden burst of hostilities between Israel and Iran nor the risk that the conflict supposes for world oil or other markets.
Source: Ambito
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