As expected, the American federal reserve left its Fed Fed rate beach stable reference to 4.25% at 4.50% on Wednesday, the second consecutive break for three decreases in the right rate at the end of 2024.
The quarterly economic projections of the Fed, however, showed a sharp drop in expectations of economic growth, the increase in GDP in 2025 observed at only 1.7% against 2.1% in December forecasts. The growth prospects for 2026 and 2027 were also cut.
“The uncertainty about economic prospects has increased,” said the Fed in a declaration that accompanies it, which is probably a reference to the tumult surrounding the tariff regime threatened by President Trump.
In addition to the slowdown in growth, the inflation of the central PCE is now observed at 2.8% this year compared to the projection of 2.5% previous. Basic inflation prospects for 2026 and 2027 were left to 2.2% and 2.0% respectively.
The “Plot Dot” – showing the prospects of FOMC members to find out where interest rates could be directed – still sees the rate of federal funds ending this year at 3.9%, such as the December forecasts. Fed Fed Fed prices for 2026 and 2027 continue to be projected respectively at 3.4% and 3.1%.
The Fed also said that it would begin to slow down the rhythm of runoff of the titles of its assessment – supposedly quantitative tightening – from April 1. The drop in treasury paper will then be cut at only $ 5 billion, compared to $ 25 billion before.
Bitcoin (BTC) was volatile in the minutes immediately after the press release, but went downward at the time of the press to $ 83,500 against just over $ 84,000 before the news.
American actions continue to have solid gains and the yield of the treasury to 10 years has decreased two base points to 4.28%. Gold, the star recently among the asset classes, remains near a record summit at $ 3,048 per ounce.
Risk assets have been beaten in recent weeks, growing concerns about President Trump’s pricing threats and his perceived impact on inflation and economic growth weighed on the feeling of investors. The feet transforming feet during meetings in December and January also canceled the hopes of financial conditions that are more loose for the short term, placing opposite winds for cryptocurrencies and actions.
The president of the Fed, Jerome Powell, will speak at 2:30 p.m. Eastern time (6.30 p.m. UTC), traders monitoring the press conference for other clues of the prospects of political decision -makers on monetary policy.
