rates unchanged, Powell highlights inflation and unemployment risks

The federal reserve maintained its unchanged reference interest rate from 4.25% to 4.50%, citing continuous economic expansion, low unemployment and persistent inflation.

The Federal Open Market Committee has also reaffirmed its commitment to reduce its assessment by continuing the runoff of treasury titles and assets backed by mortgage claims.

“Recent indicators suggest that economic activity has continued to develop at a solid pace”, the Fed said In its declaration, noting that the labor market remains strong and that inflation is still “somewhat high”.

However, the Committee reported an increasing uncertainty in economic perspectives and said that the risks of higher inflation and higher unemployment had increased.

Bitcoin (BTC) showed a certain volatility at the time of the announcement and is negotiated slightly greater than $ 96,000.

Future rate to be determined

Although the Fed has not reported an imminent rate increase or drop, he stressed that future interest rate adjustments would depend on incoming data and evolutionary risks.

The president of the Fed, Powell, said that inflation prospects improved, but that the pricing impacts are uncertain and that the Fed will act quickly if necessary, although the timing remains clear. Powell said the Fed sees in encouraging inflation trends, will learn more about prices over time and is ready to act quickly if necessary, although the calendar remains uncertain.

The central bank has reiterated its long -term objectives of maximum employment and inflation of 2%, adding that it is ready to modify the policy if the new risks threaten these objectives.

During its March meeting, the Fed had already announced a slowdown in its strategy of assessment of the balance sheet, capping the monthly redemptions of Treasury Treasury titles at $ 5 billion from June, while retaining the ceiling for securities backed by mortgages at 35 billion dollars.

All the voting members of the Committee supported the decision, Neel Kashkari participating as an alternative.