Since the Mexican currency I was going down! Despite the constant pressures by the president of the United States, Donald Trump, so that the Federal Reserve (FED) reduces the interest rate, economic analysts estimate that no changes will be announced in the next meeting, scheduled for this Wednesday, May 7. This decision could accentuate the depreciation of the Mexican peso during the week.
The Federal Reserve (FED) is expected to maintain the United States interest rate in the current range of 4.25 to 4.50 percent, as has happened since December 2024.
The economic situation of the United States, which registered a 0.3 percent drop during the first quarter of 2025, the Fed decisions of maintaining the interest rate and April data on inflation in Mexico could place the Mexican weight between 19.40 and 19.95 pesos at the end of the week, according to a report of Ci Banco.
Why could the Fed maintain the interest rate in the US?
One of the main reasons for conserving the reference rate by the FED are Donald Trump’s tariff policies, which during the first quarter of 2025 caused a 0.3 percent drop in the American economy.
According to CI BANCO, Trump -driven tariff measures have destabilized the general dynamics of the economy and accelerated import volume, which has generated growing fears on a possible recession in the United States.
Despite the slight fall of GDP, during the same period more than 177 thousand jobs in the United States were generated, exceeding 138 thousand expected. The Unemployment rate remained at 4.2 percent and wages They increased 0.2 percent monthly and 3.8 percent at an annual rate, one tenth below the expected.
During March, the index of Consumer prices preferred by the Fed (PCE) It showed a moderation of 2.3 percent in annual rate, while underlying inflation fell to 2.6 percent.
In recent weeks, the United States government announced a series of measures to reduce the impact of cars tariffs, such as granting of gradual reimbursements to automotive companies equivalent to 3.75 percent of the value of new vehicles during the first year.
In recent days, China has evaluated the possibility of resuming trade negotiations with the US government, a situation that could soften the commercial war between the two countries and has caused effects on financial markets.
The measures announced by the administration of Donald Trump and the results of the economic indicators do not seem to be enough for the Federal Reserve, headed by Jerome Powell, consider the downward modifications in the interest rate.
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