Fed maintains interest and reduces growth forecast in the midst of uncertainties

The Federal Reserve maintained the basic interest rate between 4,25% e 4,5%, quoting greater economic uncertainty and reviewing the growth forecast for 1,7% em 2025. Jerome Powell highlighted the impact of prices and warned of possible delays in inflation progress. The Fed also announced that it will reduce the pace of selling the Treasury titles, What can relieve financing costs. Source: Axios.

Fed maintains interest and reduces growth forecast: What does this mean to Brazilian entrepreneurs in the USA

The Federal Reserve decided to maintain the basic interest rate between 4,25% e 4,5%, highlighting a scenario of greater economic uncertainty. The institution also reduced its growth forecast to 1,7% em 2025, compared to 2,1% previously designed. This decision indicates a more cautious stance in the face of risks linked to changes in Trump government trade and tax policies, including rates and cuts in federal spending.

For Brazilian entrepreneurs who work in the United States, This decision has direct implications. The basic interest rate, known as Federal Funds Rate, It is an important indicator for the financial market, directly influencing loan costs, investments and credit conditions. This fee represents the percentage that banks pay to lend money to each other at night, also influencing the interest charged by financial institutions to consumers and companies.

Federal Funds Rate has a rate “target” (Target Rate) defined by the federal open market committee (FOMC), But the real rate (Effective Federal Funds Rate) varies according to market dynamics, generally remaining close to the established goal. Changing this rate is one of the main tools of the Fed to control inflation and stimulate or contain economic growth.

Maintenance of the rate indicates that the Fed chose to observe the behavior of the economy before adopting more drastic measures. The president of the Fed, Jerome Powell, He pointed out that commercial tariffs have generated pressure on prices and that this impact can temporarily slow progress in reducing inflation. Powell stressed that, Despite this effect, the expectation is that the influence of tariffs will be transitory.

Another important point is that the Fed decided to reduce the pace of sale of treasure titles to US$ 5 billion/month(previously US$ 25 billion/month), which may favor the stability of long -term loan costs and increase the value of financial assets.

For Brazilian entrepreneurs in the USA, This conjuncture reinforces the need for attentive financial planning. Movements like this can impact financing rates, credit conditions and investment opportunities. Staying informed and adjusting strategies as the economic scenario transforms is essential to ensure the financial health of its business.

Source: Axios.