The Federal Reserve continues pause on interest rate cuts, expects two cuts later this year

The rates remained unchanged after the table meeting. BootyreservoirIn the case of

The Federal Reserve simply met to discuss the ability to reduce interest rates. This time around, Fed decided to extend the rate pause, Leaving interest rates from 4.25% to 4.5% pace. The decision was made due to stable economic activity, which is planned to be increased in the first quarter. Economists mainly expected this result.

“Fed is going to keep the pace where they are today,” said William Ravia’s regional deputy chairman Melissa Kohn. Hotspent[Federal Reserve Chair Jerome Powell] It has been said many times that Fed is not in a hurry to reduce the pace. Tariffs for Trump’s administration can resubmit inflation, further exchange rate cuts are also unlikely. “

Although Fed noted that inflation remains raised, unemployment stabilized, and working markets are still strong. Feed the economy by strengthening the economy, Fed, eventually decided to leave the pace, where they were located.

“Until the economic activity of the economy of the first quarter is still on the way, American households are more and more concerned about possible redistribution, which are maintained by the main expenses. “At the same time, many still catch inflation and related services for the past few years.”

Despite the slow growing economy, consumers are not completely confident in economic condition. A number of social and political actions still affect American households. The new tariffs are one of the factors contributing to this uncertainty.

“The Federal Reserve’s War continues to influence the daily life of American households in the fight against persistent inflation,” said Anya Gezunterman. “At the top of that Fed now needs to look closely about raising prices for any tariff, which will also keep interest rates longer.”

“It says, because the economy seems to be really” soft landing “, we expect that the mortgage rates have gradually deviated lower, but not more than percentage points,” said Gezurts.

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Inflation relieves in February but trump tariffs could make progress

The end of the year is a reduction in two more exchange rates

Prices remain unchanged after feedback, but they signaled that two exchange rate cuts will take place This year. Economists greatly agree that consumers will soon see cuts. Analysts from Barclays Wait for two-quarter interest rate reduction, probably in June and September. They used to believe that there would be only one cut in June.

“The milder labor market causes us to be cut by another interest, despite the higher inflation,” says Barclays analysts.

Barclay predicts that the slowspower market will increase the unemployment rate later during the year, in October, the apex of unemployment reaches 4.3%.

The first rate cut in June is expected to “reflect [this] More slow growth and increasing unemployment.

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Mortgage prices have fallen below two months this week, remain at 7%

Consumer confidence has diminished over the last month

Many consumers don’t see the economy as steady as seen Consumer confidence studyA number of consumer confidence measures the way of feeling about the business and economic conditions of Americans.

The current index of the situation fell 3.4 in February, and the expectations also fell by 9.3 points, reaching 72.9. Below is below 80 indicators usually signal on the horizon. This is the first time that the figure has been low since 2024.

“In February, consumer confidence was registered the largest decline since August 2021, 2021,” said Stepanu Guickhar, senior economist, global indicators. “This is a decline in the third in a row, bringing the index at the bottom of the dominant interval …

More people have planned to buy houses, showing one field of improvement. The last decline in mortgage rates probably homebuyers are more prepared to buy. However, car shopping plans have decreased, as it plans to make more shopping, like TVs and other electronics.

“In February, the average expectation of 12-month inflation increased from 5.2% to 6%. This growth probably reflected the mixture of factors, including sticky inflation, but the expected effects of the prices of basic households, as well as tariffs. “There has been a sharp increase in the commemoration of trade and tariffs, ignoring the level since 2019.”

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