Live Coverage: Fed´s Powell set to hold onto rates and calm messages, markets may have other plans
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UPGRADEFed Chair Jerome Powell and his colleagues are set to leave interest rates unchanged amid "unusual uncertainty" about tariffs and their impact, potentially causing a stir in markets.
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Investors want hints of a cut in June
When will the Federal Reserve (Fed) cut interest rates? It is unlikely to happen in its May decision, but investors will follow each word in the bank's statement and every twist to the message from Fed Chair Jerome Powell. It may be insufficient to keep them calm.
The Fed and the markets do not know where President Donald Trump's tariff policy will end up. Negotiations with over a dozen countries are ongoing, and to some countries, it remains unclear what Washington wants. It is also unclear how duties will impact the economy: only push prices temporarily higher or have a lasting impact. Will growth only slow or is a recession looming?
The Fed would hike rates to curb inflation and cut them to lower unemployment, but it cannot make a call just yet. Fed Chair Powell will likely signal more data is needed before making a decision in June. Bond markets see roughly a 30% chance of a cut next month, and closing the door these hopes would boost the US Dollar. Conversely, indicating such a decision is on the cards would boost Stocks and Gold.
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Fed Chair Jerome Powell and his colleagues are set to leave interest rates unchanged amid "unusual uncertainty" about tariffs and their impact, potentially causing a stir in markets.
Follow live coverage here on Discord
Join FXStreet Premium to participate in the live coverage, get Gold alerts, access the analysts, and lots more.
Investors want hints of a cut in June
When will the Federal Reserve (Fed) cut interest rates? It is unlikely to happen in its May decision, but investors will follow each word in the bank's statement and every twist to the message from Fed Chair Jerome Powell. It may be insufficient to keep them calm.
The Fed and the markets do not know where President Donald Trump's tariff policy will end up. Negotiations with over a dozen countries are ongoing, and to some countries, it remains unclear what Washington wants. It is also unclear how duties will impact the economy: only push prices temporarily higher or have a lasting impact. Will growth only slow or is a recession looming?
The Fed would hike rates to curb inflation and cut them to lower unemployment, but it cannot make a call just yet. Fed Chair Powell will likely signal more data is needed before making a decision in June. Bond markets see roughly a 30% chance of a cut next month, and closing the door these hopes would boost the US Dollar. Conversely, indicating such a decision is on the cards would boost Stocks and Gold.
Live financial market coverage
FXStreet covers major economic releases in a live blog format, to provide readers an instant verdict of the data, rapid analysis of key assets, and for Premium members, the abilty to ask our experts questions in real time.
FXStreet Premium
FXStreet Premium provides subscribers access to analysts, exclusive actionable analysis, signals, Ed Ponsi's webinars, trade plans and a bullish/bearish indicator for Gold on critical events. Join FXStreet Premium here.
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