The Fed decided to keep the key rate unchanged – at the level of 4.25-4.5% per annum. Market participants were ready for such an outcome; according to experts, we should not expect a decrease in the near future. For example, the former head of FRB Cleveland Loretta Mester stated that there were no grounds for rate reduction. And in the opinion of Bank of America, due to the uncertainty in the U.S. economy, caused by the change of administration and the prospect of imposing import duties, the Fed will refrain from active actions for the time being and will assess the need for further reduction only in March. for further cuts. Before this rate was lowered three times in a row, reports Interfax.
In the final statement of the Fed explains that the decision was made in view of the growth of economic activity and stabilization of unemployment at a low level in the United States. At the press conference, the tone of Fed Chairman Jerome Powell was more dovish, Bloomberg reports the opinion of Adam Crisafulli of Vital Knowledge.
The main U.S. stock indices demonstrated negative dynamics during the day and ended trading with a decline.
