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2mo ago

Federal Reserve Holds Interest Rates Steady, Lowers Growth Forecast

The Fed maintains rates at 4.25%-4.5% while projecting slower economic growth and higher inflation, citing uncertainty from President Trump's tariff policies.

Die Fed hat über den weiteren Kurs der Geldpolitik entschieden. (Archivbild)
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Der jüngste Anstieg bei der Inflation ist laut Jerome Powell, Präsident der US-Notenbank, vor allem auf Trumps Zollpolitik zurückzuführen
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Overview

  • The Federal Reserve decided to keep interest rates unchanged at 4.25%-4.5%, a level maintained since December 2024.
  • The Fed revised its 2025 economic growth forecast downward to 1.7% from 2.1%, reflecting a more pessimistic outlook.
  • Inflation is now projected to reach 2.7% in 2025, exceeding the Fed's 2% target, with tariffs contributing significantly to price pressures.
  • Chair Jerome Powell acknowledged increased recession risk but emphasized it remains moderate, not high.
  • The decision to hold rates steady was not unanimous, highlighting internal debate within the Federal Reserve.