Today, the American Federal Open Market Committee (FOMC) has recently announced the first monetary political decision for 2025. press releaseThe Federal Reserve announced that it will keep interest rates fixed at 4.25 % to 4.5 %. This decision is in line with expectations.
All attention to the press conference of Jerome Powell, especially in light of Donald Trump’s return to the White House, where the media questions may focus on the possible effects on the economy and future measures of the Federal Reserve.
The federal reserve decision can be a decline in risky assets such as cryptocurrencies. The strict position of the Federal Reserve can make investors less inclined to invest in such assets.
The Federal Reserve indicated a slowdown in interest rate cuts due to the strong performance of the American economy. However, this approach appears to clash with the newly -elected political position, Donald Trump.
The Federal Reserve was expected to keep the interest rates fixed at the January meeting. While President Trump has pushed an immediate price reduction, the Federal Reserve may start due to inflation concerns. The press conference of Powell will present more clarity on future prices.
CME Fedwatch data showed that there is a possibility of 99.5 % of federal reserve maintenance rates without changing the current rate from 4.25 % to 4.5 %.
It is worth noting that the Federal Reserve began to reduce interest rates in late 2024, as it decreased by 50 basis points in September and again in November and December. More cuts of up to 50 basis points can be made, but they depend on economic slowdown and low inflation.
Trump’s tax policies may enhance the economy, but commercial tariffs and immigration restrictions may cause inflation and delay in prices. As inflation and economics continues to rise in good condition, the need for large discounts is less urgent. The future federal reserve decisions may depend on the labor market and the upcoming non -cultivated salary statements.
An inflation data for January 2025 will be released on February 12 at 8:30 am EST, and you will see the markets closely, especially with new artificial intelligence companies such as Deepseek Challenge Nvidia. Inflation, lower prices, and AI will be the main focus of investors.
