Fed Keeps Interest Rates Unchanged Amid Labor Market and Inflation Concerns
The Federal Open Market Committee (FOMC) kept interest rates unchanged during its recent meeting. Key points include:
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<li Unemployment rate is stabilized, labor market remains solid, but inflation risks are increasing.
<li The S&P 500 increased by 0.2%, while the Nasdaq Composite fell by 0.3% post-announcement.
<li Fed Chair Jerome Powell warned that sustained tariffs could lead to higher inflation and unemployment.
<li The "Fed put" may not occur unless the labor market deteriorates significantly.
<li No new projections were released, but two rate cuts are anticipated in 2025.
<li Major stock indexes have rebounded since the last FOMC meeting, with the S&P 500 up 0.5% and the Nasdaq Composite gaining 2.8% since April 2.
<li Recent easing of tariff fears has contributed to market rallies.
<li Traders should remain cautious amid fluctuating trade policy statements from President Trump.
Overall, the situation remains fluid, with ongoing monitoring required for future rate decisions.