The US Federal Reserve installed the interest today, Wednesday, in a range of 5.25% -5.5% after the increase in inflation in May and the decrease in job growth.
Federal officials still expect 50 basis points in 2025 and 25 points only in 2026 compared to 50 points in previous expectations.
The Open Market Committee stated that the unemployment rate is still low and labor market conditions are still strong, while still Inflation Somewhat high, and recent indicators indicate that economic activity continued to grow at a fixed pace.
The Federal expected a slowdown gross domestic product And high rate Unemployment To 4.5% by the end of 2025 compared to 4.4% expected in March.
The consumer price index during the past month increased 2.4% on an annual basis, compared to 2.3% registered in April, amid expectations to accelerate the pace of inflation in the coming months due to Customs The Trump administration imposed.
Excluding the prices of food commodities and volatile energy prices, the basic inflation increased in May 2.8%.
The prices of American producers increased last month 2.6% after 2.5% in April.
Trump, hours before the Federal Reserve issued his decisions, said he did not expect the federal to reduce interest. But he added that he believed that the benefit should have been reduced by two additional percentage points, that is, about half of the current range, which is seen as stimulating the economy that is still struggling with inflation.
Trump attacked the head of the Federal Reserve Jerome Powell He described him as “a foolish person.”
“I think he hates me,” Trump said in statements to reporters, “I think he hates me,” Trump said in statements to reporters.
Economists in City Bank stuck to their expectations with successive reductions in interest rates 125 basis points starting from September, while other economists were more cautious about the outlook of the far -term inflation.
The missile attacks continue between Israel And Iran For the sixth consecutive day, with Trump’s hint that the United States may intervene, and the Iranian Supreme Leader Ayatollah warns Ali Khamenei From that.
Unemployment
On the labor market level, job growth in the United States slowed in May, while the unemployment rate stabilized at 4.2%. According to the Ministry of Labor data, jobs in non -agricultural sectors increased 139,000 jobs in May, after 147,000 jobs increased in April.
Goldman Sachs Bank reduced its expectations for recession in the United States within the next 12 months from 35% to 30%, in light of the decline in the uncertainty about the policies of the president Donald Trump Related to customs duties after the United States arrives China To a trade agreement.
Earlier this week, the negotiators agreed from Washington Beijing on a framework to deal with customs duties, and the agreement provides for the abolition of Chinese restrictions on rare ground mineral exports and allow Chinese students to register in American universities.
The markets were calmed after the agreement, and fears retreated Economic recession After Trump’s “Liberation Day” fees on April 2 rocked the global financial markets.
Goldman Sachs said that the current inflation data is in US It reflects a less severe effect on customs duties on consumer prices, although they only provide limited evidence.
“The financial conditions in general are currently returned to almost pre -customs levels,” he added.