US Federal Reserve building in Washington, USA (May/2020) Kevin Lamarque / Reuters The Federal Reserve (Fed), the central bank of the United States, kept the country's interest rate unchanged in the range of 3.50% to 3.75% per year — the lowest level since September 2022. The decision, announced this Wednesday (29), came in line with financial market expectations. It was the fifth consecutive meeting in which the US central bank kept interest rates at the same level. This Wednesday's decision was influenced, among other factors, by the persistence of the rise in oil prices, amid the continued war in the Middle East, which reinforces the Fed's concerns about inflation. ??Do you have any reporting suggestions? Send it to g1 ?? Interest policy in the US has repercussions in Brazil. With rates at a historically high level, pressure is growing for the Selic, the Brazilian basic interest rate, to remain at a high level for longer, in addition to generating effects on the exchange rate. See the videos that are trending on g1: See the videos that are trending on g1 This is the 13th decision since Donald Trump took office as the 47th president of the USA, on January 20, 2025. Since taking office, there have been three interest cuts, amid an uncertain economic scenario, with geopolitical conflicts and the tariff war promoted by the Republican. It is also the second decision under the command of Kevin Warsh, appointed by Trump to preside over the US central bank. Warsh was sworn in on May 22 and officially began his four-year term following a ceremony at the White House. The change of command at the Fed occurred after months of friction between Trump and the institution's then president, Jerome Powell. Since the beginning of his second term, the Republican has argued that high interest rates make credit more expensive and harm the economy.
Fed maintains US interest rates in the range of 3.50% to 3.75% per year
US Federal Reserve building in Washington, USA (May/2020) Kevin Lamarque / Reuters The Federal Reserve (Fed), the central bank of the United States, kept the country's interest rate unchanged in the range of 3.50% to...
Effect of interest rates in Brazil — and on the markets Interest rates, still considered high in the USA, keep the yields on Treasuries, American public bonds, at more attractive levels. As they are considered the safest investments in the world, Treasuries with high returns arouse the interest of foreign investors, who direct resources to the USA and strengthen the dollar. From another perspective: despite several variables interfering with this logic, the movement tends to reduce the volume of foreign investments in Brazil, devaluing the real in relation to the American currency. Furthermore, the high dollar increases the pressure on inflation here, with consequences in the maintenance of high interest rates by the Monetary Policy Committee (Copom), of the Central Bank of Brazil.
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