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The Federal Reserve has cut the growth forecast in the United States and raised inflation, which emphasized the concerns that Donald Trump’s tariff will knock on the world’s largest economy.

The latest federal Reserve’s expectations showed that officials now expect GDP to expand by 1.7 percent this year, with prices expected to rise by 2.7 percent. He kept the main policy makers of the Central Bank interest rate At the end of a two -day meeting on Wednesday.

Federal Reserve Chairman Jay Powell admitted to reporters after the meeting that the US President’s plan to strike commercial partners with comprehensive definitions that affected the central bank’s view of Economic inflation And the economy.

Powell said: “It is clear that some of them, a large part of it,” is related to the effect of Trump’s tariff, adding that it “tends to reduce growth and push inflation to the top.” He also said that the federal reserve did not need to be in a hurry to “transfer rates that give urgent” unusually high. “

Powell said the progress in inflation “may be late.” The Federal Reserve has been fighting to restore inflation to its 2 percent goal and stop the price pressures for decades.

The Federal Reserve also announced that the pace of the quantitative tightening program is slowing, which reduces the amount of US Treasury debts that it provides to create its public budget every month from $ 25 billion to $ 5 billion starting in April.

American stocks achieved their highest levels the day after the Federal Reserve Decree, as S&P 500 increased by 1.1 percent and heavy NASDAQ technology compound by 1.4 percent.

The debts of the US government also increased, prompting the standard treasury for a period of 10 years to a decrease of 0.04 degrees Celsius to 4.25 percent.

“The good news of the risks is that the Federal Reserve is expected to rise in inflation, but it is not high enough to change the pace of price discounts,” Ed Al -Husseini said in Colombia’s investments.

The new expectations determine a major shift from December, when officials of the Federal Open Market Committee, and the Central Bank Policy Committee, expected that 2.1 percent of the 2025 growth ended, and they estimated that the inflation scale in the personal consumption expenses closely has ended with 2.5 percent.

The meeting came in a crucial time for the American economy, as Trump pledged deep discounts in federal spending and extensive tax discounts. It also imposed a new tariff that is very desperate, which sparked a global trade war.

Surveillance studies have shown us consumers and companies stumbled on the fees, which were depressed and increased prices.

Torsten Slok, the chief economist in the Apollo investment group, said the new Federal Reserve expectations “mainly indicated that we are in the recession economy, with low growth and high inflation.”

“On the one hand, the recession represents a very complicated challenge for the Federal Reserve. Should they listen to growth, which means that they should reduce prices, or should they listen to high inflation, which means that hiking rates should be long -distance?”

“It has been the uncertainty in the target of the standard standards of federal funds between 4.25 percent and 4.5 percent.

The latest forecasts of the DOT conspiracy are widespread in a large scale discounts or two others from this year-as was the case in December-after a percentage reduced prices in 2024. However, four FOMC members now expect that there are no discounts this year, compared to one in December.

Investors expect discounts from a quarter to three points by the end of 2025.

Federal Reserve Governor Christopher Waller voted against the decision to slow down quantitative tightening, saying that the current decline of $ 25 billion per month remains appropriate.

Support all members of FOMC voting decision to keep the rates hanging.