The Federal Reserve maintains fixed interest rates amid uncertainty in inflation

the Federal Reserve On Wednesday, it announced that it will leave interest rates unchanged amid uncertainty about inflation and economic conditions.

The Federal Reserve decision leaves the standard federal funds rate in the range of 4.25 % to 4.5 % and follows three consecutive discounts in interest rates in the latest central bank’s meetings-including a 50-Basis reduction in September in addition to a pair of 25 points points in November and December.

“Modern indicators indicate that economic activity has continued to expand at a strong pace,” wrote members of the Federal Open Market Committee (FOMC), the group responsible for directing monetary policy at the Federal Reserve Bank. “The unemployment rate has stabilized at a low level in recent months, and labor market conditions are still strong. The inflation remains somewhat high.”

FOMC statement said that the Federal Reserve continues to follow up on its dual mandate to achieve the maximum employment Inflation at 2 % The longer term. He added that “economic expectations are unconfirmed, and that the committee is concerned with risks on both sides of its double mandate.”

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FOMC members were unanimous in the decision to leave prices unchanged at this time. The committee’s statement added that policy makers “will be prepared to control the position of monetary policy as necessary if the risks that can hinder the achievement of the goals of the committee appear” and that they will consider a set of information including labor market data and inflation and expectations, in addition to financial and international developments because they are considered to be considered Its next step.

Federal Reserve Chairman Jerome Powell He spoke at a press conference after the announcement and said: “In general, a wide range of indicators indicate that the conditions in the labor market are in a widespread balance. The labor market is not a source of significant inflationary pressures. The inflation has been dramatically lower during the past two years, but it is still Somewhat high for our long -term goal.

Powell pointed out that the Federal Reserve Bank reduced interest rates by a full point on its previous three meetings and that re -calibration was appropriate “in light of progress in inflation and balance in the labor market.”

“With our position much less than the restriction than it was and the economy remains strong, we do not need to be in a hurry to control our position on politics,” Powell explained. “We know that reducing policy control very quickly or more than necessary can hinder the progress of inflation. At the same time, reducing policy control very slowly or very few may weaken economic activity and employment.”

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One of the correspondents asked Powell if he had a response to the president Donald Trump Comments on the World Economic Forum last week when he said that he would “demand” to reduce interest rates, with a correspondent asking whether Trump has transferred this request to him, as well as if he had a response or what is the impact of these main comments.

“I will not have any response or comment at all on what the president said. It is not appropriate for me to do this. Powell said that our tools to achieve our goals, really maintain our heads, and do our work, and so we serve the audience in the best way.”

In response to a follow -up question, Powell added that he had no contact with President Trump.

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Powell also asked a question about how he and the full moon reassured the American public that the central bank will continue to work independently of politics.

“As I said countless times over the years – this is the one we are, this is what we do. We are studying data, analyzing how this will affect expectations and balance risk, and we use our tools to try and said” to provide our best understanding, our best thinking to try to achieve our goals. ” This is always what we do. Do not search for us to do anything else. ”

“A lot of research shows that this is the best way for the central bank to work. This will give us the best possible opportunity to achieve these goals for the benefit of the American people. This is what we will always do, and people must get confidence in that,” Powell added.

Powell Edward Lawrence Powell asked for the impact of immigration policy on Unemployment Looking at his comments in September, the flow of illegal immigration contributed to its rise.

“What is happening is that the cross -border flow has decreased significantly, and there are all reasons for expecting to continue. And until now, the creation of jobs has decreased slightly … If these two fell together, this may be a reason Powell answered:” The unemployment rate to achieve stability. ” .

The President was also asked about the levels of employment in the federal reserve submitted Elon MuskThe leader of the Ministry of Governmental efficiency in Trump, saying that the central bank is “exaggerated in a ridiculous manner. Powell replied that the Federal Reserve runs “a very accurate budget process where we are fully aware of, we owe to the public and we think we are doing it.”

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The financial markets’ reaction to the Federal Reserve’s stop was largely silent, given that the move to enjoy constantly was widely expected, as the S&P 500 index fell by 0.4 % and Dow Jones Industrial Medal about 0.2 % during the afternoon trading.

“The Federal Reserve is simply trying to respond to data and new management policies during its development. At times like this, when the government policy – especially the customs tariff policy – is very unconfirmed, they do not have the edge of prediction,” said Sima Shah, the chief global strategy for the main asset management.

Shah added: “But do not make mistakes, if next month brings soft inflation in a row, along with a slight weakening of job growth, we may start hearing a renewable tone in Fedspeak,” Shah added.

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The upcoming Federal Reserve meeting is scheduled to be held on March 18 and 19 and market expectations to obtain a stopping price discounts that continue until the next meeting were strengthened through the Central Bank’s announcement on Wednesday.

The possibility of rates in the current target range of 4.25 % increased to 4.5 % through the Federal Reserve meeting from 68.5 % on Tuesday to 79.6 % after Wednesday’s announcement, according to the CME Fedwatch tool.