Forecasts of the US Federal Reserve (Fed) of the United States showed that the bank can reduce interest rates by 50 more basic points this year.
In the statement published by the Fed after a two -day meeting of the Federal Open Market Committee (FOMC), it is said that, according to the latest indicators, economic activity continues to grow with a confident pace.
The statement notes that the growth of employment has slowed down, and the unemployment rate has grown, but remains low.
The statement notes that inflation moves to the target level of FOMC in 2 percent, but remains high: “FOMC has become more confident that inflation is moving steadily to 2 percent, and decided that the risks of achieving the goals of employment and inflation approximately Balanced “.
Noting the uncertainty of economic prospects, the statement emphasizes that attention is paid to risks from both sides.
According to this document, FOMC will carefully consider incoming data, changing prospects and balance of risks when considering additional adjustments, noting that the Committee is firmly committed to supporting maximum employment and returning inflation to the target level of 2 percent.
– revision of growth forecasts and inflation towards the decrease
The Fed has also announced its forecasts for the development of the economy and reduced the forecast for the rate on federal funds from 5.1 percent to 4.4 percent of the current year.
FRS forecast for the rate on federal funds to 2025 was reduced from 4.1 percent to 3.4 percent, from 3.1 percent to 2.9 percent by 2026 and 2.9 percent for 2027.
According to these forecasts, the Fed can reduce interest rates this year in total by 50 basic points.
Inflation Bank forecasts were reduced from 2.6 percent to 2.3 percent for this year and from 2.3 percent to 2.1 percent for 2025. For 2026 and 2027, it was set at 2 percent.
Basic inflation forecasts, which excludes volatile energy and food prices, were also revised from 2.8 percent to 2.6 percent for this year, from 2.3 percent to 2.2 percent for 2025 and 2 percent on 2026 and 2027.
The US economy growth forecast is reduced from 2.1 to 2 percent this year and is predicted at 2 percent in 2025, 2026 and 2027.
The unemployment rate forecast was increased from 4 to 4.4 percent for this year, from 4.2 to 4.4 percent by 2025, from 4.1 to 4.3 percent for 2026 and from 4.2 percent for 2027.