Fed's interest rate decision was expected.
It was also the fourth time during Donald Trump's second presidential term that the central bank decided not to change the interest rate. Previously, the central bank lowered the key interest rate three times in a row.
Maria Landeborn, senior strategist at Danske Bank, sees the message as reassuring and means that the uncertainty about the economic situation is not as high as before.
One sees that the uncertainties that were focused on in the previous forecasts are decreasing, which is positive and something that the market will take note of, she says.
Positive with two cuts
The forecast, with two cuts later this year, is also positive for the Swedish economy, Landeborn means.
We have a small, open economy and it is important that it goes well in the surrounding world. We do not want a hard braking in the USA because it would spill over to us. Interest rate cuts and that their economy continues to grow also benefits us.
At the same time, she means that there are factors that can affect the forecast as it looks now.
The greatest risk is if it turns out that economic uncertainty and tariffs affect growth more than one thinks.
Better decision in a few months
Fed chief Jerome Powell says that the central bank will be able to make better decisions regarding interest rate adjustments if one waits and sees how Trump's tariff policy affects, among other things, inflation and the labor market. Since the American economy is still stable, the central bank can take its time to see what happens, according to Powell.
We will make smarter and better decisions if we just wait a few months, or however long it takes to get a sense of what effects inflation will have.
Trump has repeatedly criticized that the Fed does not lower the interest rate and also threatened to fire chief Jerome Powell. Most recently on Wednesday - ahead of the interest rate decision - the president called Powell a "stupid person" because he expected the Fed to leave the key interest rate unchanged again.
