US Fed Holds Interest Rates Steady for Fourth Time
In its latest policy meeting, the US Federal Reserve’s Federal Open Market Committee (FOMC) has decided to keep interest rates unchanged for the fourth consecutive time, maintaining the target range at 4.25% to 4.5%. The decision reflects the central bank’s continued cautious stance amid geopolitical tensions and trade-related volatility. The rates have remained steady since December 2024.
Economy Shows Resilience but Inflation Remains Elevated
According to the Fed’s policy statement, while fluctuations in net exports have impacted the data, the US economy continues to grow at a solid pace, supported by a low unemployment rate. However, inflation is still considered “somewhat elevated”, warranting a wait-and-watch approach by policymakers.
Fed’s Dot Plot Indicates Two Rate Cuts in 2025
The Fed’s dot plot chart, which outlines projections by individual members, suggests a median forecast of two rate cuts in 2025, totaling a 50 basis point reduction. Despite holding rates steady for now, officials signaled a modest easing of monetary policy in the months ahead, contingent on inflation trends and economic performance.
Participants in the meeting downgraded their GDP growth forecast for 2025 from 1.7% to 1.4%, while projecting core PCE inflation—the Fed’s preferred measure—to reach 3% by the year-end. The unemployment rate is also expected to climb from 4.2% to 4.5%, reflecting ongoing stagflationary pressures in the economy.
Powell Cites Tariffs as Key Risk to Inflation Outlook
In the post-meeting press conference, Fed Chair Jerome Powell noted a recent uptick in inflation expectations, attributing the shift partially to new tariffs imposed earlier this year. Powell explained that while the tariff-induced inflation could be short-lived, it might temporarily push up prices and slow economic activity, as it represents a one-time adjustment in price levels rather than a sustained inflation trend.
Get Latest News Live on MTIMES along with Breaking News and Top Headlines, Political News and around The World.
You May Like
Trending Searches Today |
Honeymoon Turns Tragic: Wife Sonam Arrested for Plotting Husband Murder, Meghalaya
11 Years of Modi Government: JP Nadda Highlights Key Milestones — Economic Rise, Social Reforms
“India Struck Pakistan Hard and Smart”: Tharoor Praises Operation Sindoor in the US
Tesla Stock Sees Massive Slump, Market Cap Drops by Nearly $150 Billion
A Tribute to Raj Kapoor: The Eternal Showman of Indian Cinema
NEET-PG 2025 to Be Held on August 3: Supreme Court Allows NBE Extension, Denies Further Delay
- PORTABLE DESIGN: Convenient folding mechanism allows for easy storage and transport, making it perfect for both indoor a…
- STURDY CONSTRUCTION: Solid wooden frame with X-shaped legs provides excellent stability and durability for everyday use
- VERSATILE USE: Functions beautifully as a side table, snack table, or compact coffee table in living rooms, patios, or g…
- VERSATILE DESIGN: Two-tier bedside table perfect for both bedroom and living room settings, featuring clean lines and a …
- STORAGE SOLUTION: Spacious top shelf ideal for displaying decor items, while bottom shelf provides ample space for books…
- SPACE-EFFICIENT: Compact dimensions make it perfect for small spaces while maintaining functionality as a nightstand or …
- 4 Seater Sofa Set for Living Rooms Designed by Furny | PRIMARY MATERIAL- Solid Wood & high density Supersoft Air Foam -:…
- Furny Sofas give best comfortable seating experience. Our Sofas are designed with High Quality which lasts longer. We ha…
- Assembly: Do it by Yourself , Color : Blue
