Copom cuts Selic to 14.25% per year Wednesday was a decision on interest rates in Brazil and the United States. From outside, the consequences of the war in the Middle East and the peace agreement arrive. Here, the level of employment and income put pressure on inflation projections. After a rising cycle, the interest rate reached 15% per year in June 2025. In March, there was the first cut. In April, a new drop. With another cut now, of 0.25 percentage points, the rate was 14.25%. In the assessment of the Central Bank, since the last meeting in April, the inflationary situation has worsened. Both in price behavior and inflation projections. In the statement that came after the decision, the Monetary Policy Committee said that the increase in uncertainty calls for caution in the conduct of monetary policy. 📱Bookmark g1 on Google and follow the main news of the day Central Bank reduces interest rates for the third time in a row National Newspaper/ Reproduction Under the direction of new president Kevin Warsh, the Fed, the American Central Bank, maintained interest rates between 3.5% and 3.75% per year. But the majority of Fed directors predict a rise in American interest rates in 2026. This reversed the direction of the American and Brazilian stock exchanges, which closed lower. The dollar rose to R$5.10. Daniel Telles, partner at Valor Investimentos, says that, with the credit incentive, there is little room for interest rates to fall in Brazil: "You have a country that is not as diligent with public accounts, which is causing the GDP debt projection to increase, despite revenue also increasing. So, from this point of view, you have a certain fear in the market, and the reflection of this is the request for more aggressive interest rates." GloboPop: click to see videos from the Jornal Nacional stage READ ALSO Fed maintains US interest rates in the range of 3.50% to 3.75% per year in the first decision with Warsh as president What to expect from Kevin Warsh's debut at Fed? Market observes tone of new president