Does the federal challenge Trump’s desire for the first benefit meeting since his assumption?
American interest rate decision today
Federal officials are discussing the progress in the bank’s fight against inflation and whether the interest rate on federal funds should be reduced, and their decision is scheduled to be issued on Wednesday at 2:00 pm Easter of the United States.
Also read: The most prominent of which are interest decisions .. 3 major changes focus on the markets
The President of the Federal Reserve, Jerome Powell, will also provide more details and answer questions at a press conference that will be held at 2:30 pm at the same time.
American interest expectations
Analysts do not expect the Federal Reserve, which reduced interest rates in both its last three meetings since September, will reduce the size of the Federal Reserve Fund at this meeting.
The Federal Reserve had warned after the last meeting that the facilitation pace had probably slowing down due to the constant pressure of inflation.
Trump will not get a goal
But if almost all indicators are still accurate, it is unlikely that the new White House leader Donald Trump will get at least not yet where officials weigh many variables that may make policymakes this year difficult and the Reserve Bank is likely to keep the interest on Its condition.
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What do experts say?
“The organizers may back down from their position at some time, no one knows what the White House expects at a time when political moves are still unclear, but we know that a number of proposals that have been talked about The White House involves some inflation and I think this would keep the Federal Reserve Bank under control, “according to CNBC.
Market estimates for interest rates
In fact, market estimates indicate a certainty of approximately 100% that the Federal Open Market Committee, which determines interest rates, will maintain the interest rate of the Central Bank in a targeted range of 4.25% and 4.5%, according to the data of the CME group.
In fact, traders believe that the Federal Reserve will remain in its position until June, which is the period during which Trump’s plans are likely to appear on customs definitions, regulations and immigration more clearly.
Trump said on Thursday that he “will demand the reduction of interest rates immediately” although he does not have the authority to the decisions of the Federal Reserve.
American interest rate path
The Federal Reserve reduced interest rates in both its last three meetings and reduced the short -term borrowing price by a full percentage.
Dallas Robert Kaplan, former Federal Reserve President, said that despite the pressure of the White House, central bank governors must adhere to their position and stop changing policies.
Kaplan, who is now an executive position in “Goldman Sachs”: “It is the correct invitation to stay fixed. Perhaps the progress of inflation has not stopped, but it is heading sideways and there are four or five ongoing structural changes and is about to reveal and the right thing that should be done is not to do anything at this meeting. “
3 decisive changes
Kaplan cited three changes that may lead to a shrinkage of inflation: Reducing government spending and organizational review by the newly formed advisory committee, which Trump called the Ministry of Government Efficiency and Trump’s approach to dealing with energy as well as the expected efforts to make the sector structure more efficient.
In terms of inflation, Kaplan sees the possibility that customs tariffs lead to high prices while collective deportation – which began seriously – may lead to high costs of employment.
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