Summary
- The Fed reported that it lowered this year's US economic growth rate forecast from 2.1% to 1.7%.
- It announced that the personal consumption expenditures (PCE) price index growth rate forecast was adjusted upward from 2.5% to 2.7%.
- Jerome Powell, Chairman of the Fed, emphasized that he will respond cautiously until there are clear economic signals.
The Federal Reserve (Fed) on the 19th (local time) lowered its forecast for this year's US economic growth rate from 2.1% to 1.7%. It raised the forecast for the personal consumption expenditures (PCE) price index, an inflation indicator, from 2.5% to 2.7%.
At the monetary policy meeting held that day, the Fed kept the benchmark interest rate unchanged at 4.2~4.5% per annum as expected by the market, and released these revised economic forecasts. It views that the economy is slowing and inflationary pressures are increasing due to the tariff policies of US President Donald Trump. The year-end benchmark interest rate forecast (median) was maintained at 3.9% per annum. Jerome Powell, Chairman of the Fed, said at a press conference after the monetary policy meeting, "There is no need to rush additional (rate) adjustments," and "We will respond cautiously until clearer economic signals appear."
New York = Correspondent Park Shin-young nyusos@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
