#FOMCMeeting Economic Outlook: Recent data presents a mixed picture. While GDP contracted by 0.3% last quarter, the labor market remains resilient, with 177,000 jobs added in April. However, new tariffs introduced by President Trump have disrupted business sentiment and manufacturing activity, raising concerns about potential stagflation.

Inflation and Employment: The Fed faces a policy dilemma as tariffs may simultaneously drive up prices and suppress employment, challenging its dual mandate of price stability and maximum employment.

Market Expectations: Investors are closely watching for any signals from Fed Chair Jerome Powell during his post-meeting press conference. While immediate rate cuts are unlikely, markets are pricing in potential reductions starting in July or December, contingent on further economic data.