Upcoming FOMC Meeting
📅 Date: May 6–7, 2025
🔑 Current Rate: 4.25%–4.50%
💡 Market Expectations: All signs point to the Fed holding the line on rates for now, with the possibility of cuts later in the year if the economy slows.
Economic Indicators
📉 Bond Market Signals: The 2-year Treasury yield just dipped below the Fed’s benchmark rate, hinting that the market expects some rate cuts ahead.
👥 April Jobs Report: Job growth is slowing, with an estimated 133,000 jobs added in April—down from 228,000 in March. Looks like the labor market might be cooling off.
Fed HQ Renovation Controversy
🏗️ Cost Surge: The Fed’s D.C. headquarters renovation has ballooned to $2.5 billion, up from the initial $1.9 billion.
💬 Public Backlash: The luxury touches like rooftop gardens and VIP dining areas have caught heat, with figures like Elon Musk calling out the extravagant spending.
Political Pressure
⚖️ Trump’s Criticism: President Trump isn’t happy with Fed Chair Jerome Powell’s policies, pushing for rate cuts to help stimulate the economy as tariffs continue to bite.
📊 Fed’s Response: Despite political heat, the Fed sticks to its data-driven approach, balancing inflation with job growth.
Stay tuned for the Fed’s official stance on May 7—this could be a game-changer for the market!