This Wednesday, from the city of Washington, Jerome Powell announced that the Federal Reserve (the Central Bank of the United States) decided to keep the reference interest rate unchanged.bull about 2.5%. This is a positive fact for Argentina, bearing in mind the need for funding that it must cover its deficit in public accounts. Y also because it prevents the capital from salvaging in US government bonds.
After the Fed ratified its commitment to raise taxes in December, Powell noted thatthe script is no longer the same. "World economic growth has slowed down, the government's closure will be there negative effect on the GDP of this quarter and financial conditions deteriorated ", were the reasons given by the US official not to raise rates.
In addition, the entity's chairman also commented that the Federal Reserve is seeing certain "conflicts and contradictions" in global economic growth. Among these conflicts, he highlighted tensions in the US trade negotiations Brexit (exit from the United Kingdom of the European Union) and shutdown (closing the US government).
Asked if the next decision would be to increase or reduce rates, Powell said that "it will depend exclusively on economic results. We do not make a judgment, it is not a priority. We will wait patiently and we will clarify the economic results, "he said.
At the end of the press conference, a journalist asked Powell if she felt Trumpet pressures or the market to stop the growth rate. To this he replied: "My only motivation does the right thing for the economy and Americans. The situation requires patience. We see a scenario with uncertainty and we are facing a moment in which we have a luxury to be able to wait. "