The Federal Reserve has kept interest rates steady, aligning with market expectations as it shifts focus to new economic forecasts.
What Are Fed's Updates?
Recent updates indicate that the Fed has downgraded growth projections while increasing the inflation outlook. The previous growth estimate for 2025 has been adjusted downward, suggesting a potential slowdown.
Could Rate Cuts Be Coming Soon?
The number of board members not anticipating rate cuts has increased. The Fed is easing its quantitative tightening, lowering the cap on U.S. Treasury debt management. The decision to keep the rates unchanged was unanimously supported by all FOMC members.
Key Points from Jerome Powell
- The economy shows strength and a solid labor market. - Consumer spending appears to be moderating. - Surveys reveal rising economic uncertainty. - The labor market is not adding inflationary pressures. - Long-term inflation expectations are aligned with the 2% target. - Policy decisions will be guided by evolving economic conditions.
Amid ongoing uncertainty, the Fed maintains a cautious approach, remaining flexible in its policy decisions. The main focus is on balancing growth with inflation control.
