FED policy makers have kept the benchmark loan percentage unchanged since their last rate reduction in December, while civil servants are waiting for clarity about how Trump’s rates influence the largest economy in the world.
Their patient approach has the president, who has punished FED chairman Jerome Powell at several times and has called him a “Numbskull” and an “idiot”.
On Tuesday, the Fed said in a statement that her policy meeting started at 9:00 am Us Eastern Time (1300 GMT) as planned.
The case to keep the interest rates stable on a range between 4.25 percent and 4.50 percent this week was made by various FED speakers, said JP Morgan Chief us -economist Michael Feroli in a recent ticket.
Inflation remains above the target of the FED in the longer term of two percent, risks continue to exist and the labor market is almost complete work, he added.
Analysts expect to see some different opinions from FED policy makers at the end of their meeting on Wednesday, since a few officials have indicated an openness in July to assess cutbacks.
“It will be interesting to see whether Powell refers to a potential policy dependence before the end of the year,” or whether he avoids explicit forward guidelines, given differences between the Fed rate committee, said Ey Chief Economist Gregory Daco.
“Without non -approaching need to act, and a broken FOMC with asymmetrical risks, the FED will probably wait until September to deliver the next 25 basic points reduction,” Daco added, referring to the Federal Open Market Committee.
The Fed said that Governor Adriana Kugler would not attend the meeting “because of a personal matter.”
#FED #opens #policy #meeting #set #rates #stable