The Federal Reserve Meeting for Interest Rates developed in two meetings.
One is the meeting made by the Central Bank’s decision. Second, Jerome Powell’s chairman Jerome Powell is a post-news conference that explains what Journalists and more important and more important.
On Wednesday, the practical effect came, about 2:30 in the Eastern News Conference in the Eastern United States. Until then, the Standard & Poor’s 500 index was mainly expanded after the loss of Tuesday.
Then the index is 5,675, 1.1% per day and 13 March 13 to 154 points.
Since Powell’s says eight goes out and moved as the markets.
Related: Tesla Indisers, unexpected, including an unexpected
Fed left the main interest rate alone
The federal funds remain from 4.25% to 4.5% of the Central Bank to accuse each other for their loans overnight. This was absolutely expected.
Why refused the proportion nourished. Silik is the basic degree for the majority of US interest rates. Powell said the ratio was alone, because now there are many economic uncertainty. Fed wants to see how All economic forces Interaction before making a great move.
The second more esoteric piece of the Fed decision: the major inventory of the treasury securities, intended to reduce large inventory of up to $ 5 billion. This was to moderate the impact of Fed’s bond markets. Bond prices can help shore.
Fed sees two more reasons in 2025
This is the summary of the economic forecasts of the federal reserve, known as Dot fields. Dot fields are a number of guesses about the nutritious authorities to be the economy. They are not more serious than that. The Fed sees two more rates decreases this year, which will increase the federal rate from 3.75% to 4% to 4% to 4%.
How did the markets react to the Fed decision?
Shares increased because investors are pleased to know that the Fedin is not in panic on tariffs. Powell was better said better they played the policy of the Trump administration and deal with their subsequent violations. The main average indicators were higher.
A winner in the day: Tesla (Tsla( For a while, he enjoyed the best day and rose from 4.7% to $ 235.86 and from March 10 to 7.2% is $ 220. The electric transporter producer led by the Presidential Advisor Elon Musk, this year is still less than 41.6%.
The consumer in the consumer entered in Tesla was the best S & P 500 sector per day.
Fed says the economy is still in a good place
Smart people may agree, but it has been mostly Powellin’s mantra since the end of 2024. Unemployment is historically low, about 4%. A number of interest rates were solved. The 10-year-old treasury product was completed at 4.29%, below Wednesday and on January 3 to 4,793%.
Consumer-feeling studies, which says and showing variable cost skills, have been less reliable than the factual information. After the work is resolved, the strength of the economy will manage the day.
He said that economic stress will prove the “passage”. Powell critics noted that inflation increases in 2022, he said.
Mortgage rates slide. Mortgage loans are about 6.75%, high for some buyers, but at 7.1% or higher than the January peak.
Slide, since January, since January, since January, it probably came as the weather was easier for the weather. However, the building permit fell by 1.25%. A more clear picture in the housing market, when the National Realtors Union releases the sales report on the February.
Two unwanted economic results
Dot plot forecasts, the economic growth slows down and inflation extends a little after a while next year. The changes were mainly due to assumptions that tariffs would affect the economy.
GDP growth. In December, the forecasts assumed that the economy will increase by 2.1%. Now forecasts are for 1.7% growth.
Pite Inflation. This inflation number is obtained from the monthly individual income report and measures price changes for accepting people really. This is the preferred inflation measure of the Fed. In December, the forecasts were 2.8% of the main inflation (except for food and energy). Projection is now 3%.
More economic analysis:
- Retailer Fed Rate adds a new complication to the cut forecast
- CPI inflation surprise resets tariff conversation
- Friday does the big rally mean the worst of the worst?
Uncertainty is still alive and good, the Fed says
Fed even acknowledged it. The second paragraph of the Fed’s statement is called: “Uncertainty has increased around the economic outlook.”
The government continues to reduce salary and more lawsuits against them. Many government politics are seen in flight, including tariff decisions, and then canceled.
In fact, Powell, “I do not have a prediction that is very trusted in the forecast.”
Notice for April 2: The Day of Mutual Tariffs
This is one of the largest uncertain sources. President Donald Trump announced reciprocal tariffs against the countries believing the administration’s affairs.
So far, leadership has announced tariffs that affect $ 800 billion from China, Mexico and Canada.
The Washington Post said that the management thinks of trillions on Wednesday.
Similar: Veteran Fund Manager, submitted S & P 500 forecast
