#FOMCMeeting Difficult Situation of the Fed: What to Expect from the May FOMC Meeting

Due to the divergence between "soft" and "hard" economic data, a reduction in interest rates may be postponed for several months

Key Takeaways

At its May meeting, the Fed is likely to keep interest rates unchanged, as Trump's tariffs have clouded the economic outlook.

"Soft" economic data is deteriorating, but "hard" data still looks strong.

As the impact of tariffs on the economy is highly uncertain, markets expect an interest rate cut in July, but some strategists say it may take longer.