The Federal Reserve leaves the main interest rate without change amid economic uncertainty

The Federal Reserve announced on Wednesday that it will leave the standard interest rate unchanged as policymakers continue to monitor inflation and the labor market amid high levels of economic uncertainty.

The central bank’s decision leaves the standard federal funds in the range of 4.25 % to 4.5 %.

This comes after the Federal Reserve has left interest rates at this level in its previous meeting in January and March, which followed three consecutive discounts in its previous meetings-which included a 50-Basis reduction in September and a husband of 25 points in November and December.

The FOOC Open Market Committee (FOMC), which directs the monetary policy movements of the Central Bank, noticed in its announcement that “U) on the economic view has increased” and the Federal Reserve monitors risks on both sides of its double mandate, adding that the risk of high unemployment and high inflation.

“Although the fluctuations in net exports have affected data, modern indicators indicate that economic activity has continued to expand at a strong pace,” FOMC wrote. “The unemployment rate has stabilized at a low level in recent months, and labor market conditions are still strong. The inflation remains somewhat high.”

Federal Reserve Chairman Jerome Powell said in remarks after announcing that the economy is in a “strong situation” despite “increased uncertainty” and noted that inflation “decreased significantly, but it was somewhat higher than our long goal 2 %.”

Powell said: “The new administration is in the process of implementing major changes in politics in four distinct areas – trade, immigration, financial policy and organization.” “The increases in the customs tariff that have been announced so far were much greater than it was expected. However, all these policies are still developing, and their effects on the economy are still very unconfirmed. If the large increases in the definitions announced are sustainable, it is likely to generate an increase in inflation, slow economic growth and increase nothingness.”

“The effects of inflation can be short -term, which reflects a single -time shift in the price level. It is also possible that the inflationary effects are more stable instead. Avoid that the result depends on the size of the effects of customs tariffs, on the time it takes to go through a full help to prices.

This is a developing story. Please check again for updates.