#FOMCMeeting

The Fed is likely to hold interest rates steady at its May meeting, with Trump’s tariffs having muddied the outlook for the economy.

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

With the tariff impact on the economy highly uncertain, markets expect a July interest rate cut, but some strategists say it could take longer.

While another interest rate pause looks like a foregone conclusion at this week’s Federal Reserve policy-setting meeting, the path forward is anybody’s guess. In the bond market, traders are betting that the Fed will lower interest rates in July. However, given the significant unknowns in the economic outlook resulting from President Donald Trump’s trade wars, the timing of interest rate cuts (if there are any this year at all) could change dramatically in the months ahead.