Americans face higher interest rates for longer thanks to Trump

The US federal reserve is growing in the health of the American economy, the Central Bank cuts 2025 growth forecast, and this year, it reveals an increasing division of whether there will be any rate deduction.

Despite continuous demands for December and large cuts from Mad King Donald, the FED left US interest rates by 4.25% to 4.5%.

Actually the last predictions And the Fed members show that seven of the seven of the 19 FED members, which they think will be from the next three months to two years, envisaged deduction from four members this year in US interest rates in March. The land has shown that the majority of the members will still fall to the target range of 3.75% to 4%, which means two reductions in the next few months. But now there is less cutting estimates for 2026 and 2027.

Although this is a little more gloomy than the Fed’s newest appearance is a little more gloomy than walking forecasts. New economic projections show that the FED expects unemployment to increase more than expected in March this year and that prices will increase more than expected. The Fed now sees that the price index (PCE inflation), which except food and energy, will increase by 3.1% in 2025, which was higher than 2.8% in 2025. The PCE inflation was 2.1% in April and has been in the lowest level since February 2021. Except for food and energy, the core PCE was 2.5%, and energy prices cannot be implied as oil and gasoline prices increase after Israel’s attacks on Iran.

Economic growth is expected to slow down only 1.4% this year compared to 1.7% in March. Both would fall from 2.8% under Joe Biden in 2024. Unemployment is expected to be 4.5% from the estimation of 4.4% in March until the end of this year.

FED President Jerome Powell said that at the news conference after the meeting, Trump expects to turn into higher inflation at the end of the tariffs, but the scope was uncertain. He said that this should be evident for the Fed to re -reduce borrowing costs. “We should learn more about the tariffs. “It is difficult to know with any confidence when we need to react until we see the size of the effects.”

This partly depends on the chaotic nature of Taco syndrome and Trump’s policy -making policy -making with Taco syndrome for the most important US suppliers such as China.

Chaos is not limited to tariffs. US farmers complain aloud about the impact of Trump on the production of immigrant raids, which threatens to keep the primary labor force, to hang the products and to raise food inflation. Five days agoTrump ordered ice officials to raid on farms, hotels and restaurants in the pursuit of undocumented immigrants. But then MondayTrump returned again and the raids continued. Good luck to employers who try to follow politics.

Before the Fed meeting, Trump once again insulted Powell, and he reduced him stupid, “political” and “too late” interest rates and threatened to appoint himself – or maybe the horse – to the Federal Reserve.

However, American consumers showed their views on Trump’s policies. Retail sales Last month fell sharply Car purchases fall. Consumer expenditures constitute approximately two -thirds of the US economy, and the deterioration of consumer confidence is a key factor in the economic slowdown that dragged America.

Normally, the Fed would respond with interest rates, but Trump’s inflationary policies are locked, while the FED is trapped in a waiting game to see how to correct damage.