The Federal Reserve reduces the expectations of the American economy, but it carries constant interest rates

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The federal reserve reduced its view of the American economy on Wednesday, with policy makers dividing whether they will be able to reduce interest rates ever this year as Donald Trump’s tariff raises the risk of higher inflation.

The Federal Reserve has left the suspended borrowing costs for the fourth consecutive meeting, as seven prices of prices said that they now expect the target scope for federal funds to remain at 4.25-4.5 percent for a period of 2025.

In March, only four officials expected any price cuts this year. Eight officials still believe that they will reduce interest rates by a quarter of a point twice this year, compared to nine in March.

The new expectations have shown growth in the largest economy in the world that will reach 1.4 percent for 2025 – much weaker than last year, with unemployment from its current level of 4.2 percent to 4.5 percent, and personal consumption expenses of 2.1 percent to 3 percent.

In March, the average expectations between US price lists were for the economy to expand by 1.7 percent, and unemployment rises to 4.4 percent of personal consumer expenditures to reach 2.7 percent.

Treasury revenues fell and American shares jumped after the decision. The return decreased for two years, with moves with interest rate expectations, to the lowest levels of the session.

Federal Reserve officials indicated that President Trump’s tariff raises the risk of stagnation, which leads to high inflation and slow economic growth. Two officials now say interest rates will decrease only once, compared to four of Trump’s “Editorial Day” ads. There are still two officials who expect three discounts in a quarter.

This is a developing story