The Qi Research CEO and the senior strategist Danielle Dimartino Booth respond to the Federal Reserve and make interest rates unchanged.
The Federal Reserve announced on Wednesday that the interest rate left unchanged among the uncertainty about inflation and economic conditions.
The federal decision leaves the Federal Funds in a range of 4.25 % to 4.5 % and follows three consecutive interest rates in the latest central bank meetings, including a 50-consistency decrease in September as well as a pair 25. Decrease in the point in November and December.
Members of the Federal Free Market Committee (FOMC), the Federal Reserve's monetary policy guidance, wrote: “Recent indicators indicate that economic activities have expanded at a complete speed.” “The unemployment rate has been stabilized in recent months and the labor market conditions remain. Inflation is somewhat rising.”
The FOMC statement said that the Federal Reserve continues to pursue its dual duty to achieve maximum employment and inflation in 2 % over a long period of time. “The economic outlook is unclear, and the committee is paying attention to the dangers of both parties,” he said.
FOMC members were unanimously decided to leave unchanged rates at this time. The committee's statement added: “Policymakers are” ready to come up with the risks of monetary policy, if the risks that could hinder the goals of the committee “and that a wide range of information, including labor market data Considering inflation and expectations. , As well as financial and international developments as it considers its next move.
“In general, a wide range of indicators show that the conditions in the labor market are widely balanced,” said Jerome Powell, after announcing the press conference. Inflation is not significantly reduced over the past two years, but it has been somewhat higher than our 2 % target. “
Paul noted that the Federal Reserve reduced interest rates with a full score over its previous three sessions, and it is appropriate to re -inflation and re -balance in the labor market.
“With our position, we do not need to be in a hurry to adjust our policy position than it was and a strong economy,” Powell explained. “We know that reducing policy constraints too quickly or too much can prevent progress in inflation. At the same time, reducing policy restrictions too slowly or very low can weaken economic activity and employment.”
Powell was asked by a reporter whether he had responded to President Donald Trump's remarks last week when he said he “wanted” to lower interest rates, well, if he had a response or What is the impact of such President's statements?
“I don't want any answers or comments on what the president said. It is not appropriate for me to do it. Powell said, our tools to achieve our goals and really keep our heads and do our job and so that we are best We are in the service of the people.
In response to a follow -up question, Powell added that he had nothing to do with President Trump.
Paul also raised the question of how he and the Federal Reserve can assure the American people that the central bank will continue to work independently.
“As I said over the years – who we are, this is what we are doing. To understand our best, our best thinking is to try to achieve our goals.” “It's always the work that is always We do not do the job.
“Many research shows that the best way to work a central bank is to give us the best possible opportunity to achieve these goals for the benefit of the American people. It is always what we want to do, and people should Powell added: Self -esteem.
According to his remarks in September, Paul from Edward Lawrence was asked about the impact of immigration policy on unemployment.
“What is happening is that the flow at the border has declined very significantly and there is any reason to expect it to continue. Powell responded, unemployment rate for consolidation.
According to Elvan Maskan, the leader of the Trump administration's efficiency (DOGE), the chief also asked the chief about the level of federal staff, saying the central bank “is irregular.” Paul replied that the Federal Reserve “runs a very precise budget process that we are fully aware, we owe it to the public and believe that we are doing it.”
The financial market reaction to the Federal Reserve was largely shut down as the move was widely forecast to hold stability, although the S&P 500 index is about 0.4 % and the Dow Jones industrial average during transactions after At noon declined by about 0.2 %.
Sima Shah, a major global strategist for managing the main asset, said “the Federal Reserve is simply trying to respond to the new government's data and policies. They do not have a forecast margin.
“But make no mistake, if a consecutive consecutive consecutive print, along with a minor weakening of business growth, we may start to hear the frustrated voice again to Fedspeak,” the Shah added.
The next Federal Reserve meeting will be held on March 18 and 19, and market expectations of pause to reduce the rate at the next meeting were strengthened by the announcement of Wednesday.
According to the CME Fedwatch tool, the probability of the remaining 4.25 % to 4.5 % at the March Federal Reserve session increased from 68.5 % on Tuesday to 79.6 % after Wednesday's announcement.
This is a developing story. Please review again for updates.