The Federal Reserve holds fixed interest rates and expects price discounts for 2025

Investors and business leaders may feel as if the economy swings on the edge of the knife, but the data, which was reassured by a chair fueled by Jerome Powell, pointed to a strong image – although those were more attractive than before. Whether it is withdrawing the storm or not, the decisive question is on hand.

“The uncertainty about economic expectations has diminished, but it is still high,” according to the Federal Reserve statement issued after the meeting.

With the issue of price discounts to a large extent, investors have turned their attention to the federal reserve summary of economic predictions, which are usually referred to as the “point plot”. Hope is that the quarterly expectations of the quarterly officials on the American economy, which includes interest rates, inflation and growth, will provide some hints on their views of the economy. As the Federal Reserve usually contains his perception, investors often hope in my divine some greater understanding about the fate of the American economy.

The average dropping rate of discounts was at a quarter of a point in 2025.

The previous DOT plot, issued in March, was the same medium projection. One of the main updates of this version was to anticipate a decrease in the growth of gross domestic product and high inflation over the year 2025. At that time, this was a great development because it means that the FBI officials were not just thinking about the possibility of two unwanted changes, but also began to see it as a possible result of the current path of the economy.

However, it should be remembered that the DOT plot is not a commitment to a certain amount of price cuts; Instead, it is a set of predictions made by senior federal reserve officials at a certain moment in time. More importantly, it also does not convey the extent to which each official is supported in their expectations.

However, it is an important measure of the place where the central bank sees monetary policy address. With only six months remaining in the year, the timing that he left for the rate reduces (but not guarantees) becomes more compact. Currently, the consensus seems to be that there will be either price cuts or two.

For President Donald Trump, no discounts in the interest rate can come soon. His criticism of the Powell is a customary part of FOMC meetings. From the president’s point of view, interest rates should decrease because inflation did not increase. Although this is true, the Federal Reserve is still reluctant to reduce interest rates because it is not sure that the inflation will increase again as a result of Trump’s definitions.

So far, the Trump administration has made some progress in the commercial agreements that it promised – something that investors believe to calm the markets. The United States says it has signed an initial agreement with the United Kingdom and established a framework for an agreement with China after two meetings. While an early mark welcomes that the United States may return to its previous role in the global economy, the deal is not less than the dozens promised by the White House. As a result, uncertainty remains.

Meanwhile, geopolitical conflicts also risk the suspension of the market – that is, military measures between Israel and Iran. The widespread struggle in the Middle East is exacerbated only by tensions in a volatile part of the world. Shipping across the Red Sea, oil markets and US military participation is still all open questions now. Their potential and important answers – unrelated news for those who demand clarity.