As expected, the American Federal Reserve (FED) once again left its interest rates without changes on Wednesday in a range between 4.25% and 4.50%, despite Donald Trump’s pressure.
This decision was made unanimously, said the American Central Bank in a statement published after its two -day monetary policy meeting. The level of Fed guidelines has not changed since December.
The Central Bank wishes to see how the United States raises the protectionist offensive of the US president.
“Uncertainty about economic perspectives has increased even more,” according to the press release of the Central Bank, which believes that the risks of seeing “greater unemployment and” greater inflation “have also” increased. “
“It’s time to wait”
Fed officials said that before moving the rates, that guide the cost of credit for companies and individuals, they wanted to have enough data on the turn of the US economy against the agitation of their exchanges with the rest of the world.
There are “so many uncertainties” for the United States due to customs duties that “it is time to wait before adjusting monetary policy (…) we must observe more data,” he said.
“We could end in a difficult scenario where our two goals [plein emploi et inflation maîtrisée, NDLR] They are in tension, “said Jerome Powell.
“Great Loser”
Meanwhile, Donald Trump called the Fed to reduce his rates. This would have the effect of absorbing the impact of its policies by giving an impulse to the economy, at the risk of feeding inflation.
The president called Jerome Powell to “great loser” last month and seemed to get a way of getting rid of him.
The possibility of an interrogation of the independence of the Fed, a pillar of the US economy, frightened financial markets. Donald Trump ended up saying that “he had not intended” to send him back, while he continued to criticize him green.
Source: BFM TV
