Stagflation? FED this year sees greater inflation and economy for less than 2%

Federal reserves officials reduced their economic prospects in their latest screenings posted on Wednesday, seeing that the US economy is growing at a pace of lower than 2%.

The Federal Committee for the Open Market that has set a rate has reduced its collective prospects for economic growth to 1.7%, which is a decline since the last screening of 2.1% in December. In the meantime, officials have been hiking with their appearance for inflation, looking at the basic prices growing 2.8% of the annual pace, compared to the previous estimate of 2.5%. The moves suggest that the central bank sees the risk of stage scenario, where inflation increases as economic growth slows down.

In a statement, Fomc noted that “the uncertainty of economic appearances has increased,” adding that the central bank is “careful about the risks of both sides of its double term”.

The fear of economic slowdown and the reaction of inflation has increased significantly because it is expected that the aggressive tariffs of President Donald Trump will increase the prices of goods and services and consumer consumer consumer prices for key American trade partners.

For now, the FED is still expecting to make two reductions in the rest of the 2025 years, according to the middle projection, even when the prospect of inflation is a chance.

The so-called dot point indicated that 19 members of the FOMC, and voters and not voters, see the FED FED rate at 3.9% by the end of this year, which is equivalent to a target range of 3.75% to 4%. Central bank retained his key interest rate unchanged ranging between 4.25% -4.5% on Wednesday.

However, their gaze ordered more hawk in their rate of rate, and four members did not see the changes in the rates in 2025. At a meeting in January, only one official this year did not predict changes in interest rates.

Here’s the latest targets of the Fed:

– Jeff Cox contributed to CNBC.