The U.S. Federal Reserve concluded its two-day monetary policy meeting on the 18th and announced that the target range for the federal funds rate would remain unchanged at 3.5% to 3.75%. Federal Reserve Chairman Powell said that from September to December last year, the Federal Reserve lowered the policy interest rate by 0.75 percentage points, bringing it back to a reasonable range of the neutral interest rate forecast range. However, there is still uncertainty about the impact of the evolving situation in the Middle East on the U.S. economy. In the short term, rising energy prices will push up overall inflation, but it is still too early to judge the breadth and duration of its potential impact on the economy.
Powell also said that the median participant predicted that the appropriate level of the federal funds rate would be 3.4% by the end of this year and 3.1% by the end of next year. This forecast value remains consistent with the forecast in December last year. But Powell said, as always, these personal forecasts are uncertain and do not represent the committee's plans or decisions. There is no fixed path for monetary policy and the Fed will make decisions on a meeting-by-meeting basis.
Powell will end his term as Fed chairman in May this year. Powell said that if a successor has not been confirmed by the end of his term as Fed chairman, he will remain as "interim chairman" until a successor is formally confirmed.
Since taking office in January 2025, U.S. President Trump has repeatedly pressured the Federal Reserve to cut interest rates, criticizing Federal Reserve Chairman Powell's actions as always being "late and wrong." Powell has repeatedly stated that he is firmly committed to maintaining the Federal Reserve's independence from political influence. (CCTV reporter Xu Tao)
