Mar 14, 2025

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Analysts Warn ‘Fed Put’ Not Likely Ahead of FOMC Meeting

During the Digital Asset Summit in New York, the Federal Open Market Committee (FOMC) is expected to maintain current interest rates. The next rate-setting meeting will be in May, with only a 30% chance of a cut.

Key points include:

• President Trump announced new tariffs on steel and aluminum imports, posing risks to economic stability.
• The Fed's Jerome Powell indicated no changes to policy without significant labor market deterioration.
• HSBC analysts noted that the Fed will not adjust its stance unless economic data worsens, which could increase recession fears and lower asset prices.
• The labor market appears stable, but potential tariffs may impact hiring negatively.