US Fed expected to sit tight as Trump tariff fears buffet markets

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WASHINGTON: The US Federal Reserve is widely expected to increase its rate on Wednesday as it is trying to go through President Donald Trump’s re -economic turmoil, once again to reach prices.

Since taking office in January, the Trump administration has promoted Levies over top trade partners, including Canada, China and Mexico – just to overtake some of them – and threaten to impose mutual taxes on other countries, and have been lacking in recent weeks.

Many analysts fear that Trump’s prices, civil service job deductions, and immigration projects can increase inflation and hinder economic growth, and that inflation is complicated while maintaining plans to reach its long -term target.

Since inflation is very high, feed policy makers are likely to be stable between 4.25 and 4.5 percent, and to indicate that they will wait further clarification on the economic impact of the administration’s new policies before they consider a cut.

“The interest rate will not change, and there is a good reason.”

“It is not clear how high the rates will get, how big they will be, and how long will they go,” he said. “And it is very difficult to guess how inflation or unemployment will have an impact unless they get a little more.”

Policy makers of the Fed Rate Committee will also publish the latest economic predictions on Wednesday, many analysts expected to increase their inflation approach due to uncertainty of trade, and reduce their predictions for economic growth.

Slowing the economy

Until recently, strict economic data pointed to a very strong US economy, which showed the Fed’s favorite inflation rate of 2.5 % in January to January-a target above but below the height of four decades in 2022.

At the end of 2024, the economic growth was relatively strong, while the labor market has been strong enough, with a healthy level of job creation, and the unemployment rate is closer to the historic low.

But after returning to the White House, the mood has changed in weeks, inflation expectations are increasing, and the financial markets have been stabbed, as the revenue is a stop start -up.

“We do not have to be in a hurry, and we are in a good position waiting for the maximum explanation,” said Jerome Powell, chairman of the feed this month, pointing to the uncertainty of Trump’s economic plans.

‘Disaster’

Although Fed officials have tried to avoid criticizing the new administration, some analysts have been stopped less.

“The management of US President Donald Trump’s economic policy has been a catastrophe,” Michael Sterin, director of the Economic Policy at the Conservative American Enterprise Institute, wrote in a recent blog post.

“Earlier, it would have been unusual for a president – including Trump, during his first term – deliberately damaged the economy.”

In the December economic point of view, the feed policy makers reduced the rate of two -fourths for this year. During the uncertainty of the trade, Barclass economists have written in a recent note that they expect the policy makers to dial on just one cut this year.

“Fed officials want to be careful not to treat much,” said Kathygenk, a chief economist across the country, told AFP.

“There is a lot of uncertainty,” he said, adding that he hoped that the US economy would be further explained after Trump’s retaliation planned on April 2.