#FOMCMeeting Emergency warning: the market will fluctuate sharply today and tomorrow (Especially for you guys #long #short)
📅 Meeting time and content
Meeting date: May 6-7, 2025
Decision announcement time: 2:00 AM on May 8 according to Hanoi time
Press conference by Chairman Jerome Powell: 2:30 AM on May 8 according to Hanoi time
📊 Economic outlook and interest rate decision
Current interest rate: 4.25%–4.50% (maintained since December 2024)
Recent economic data:
Previous quarter GDP: Decreased by 0.3%
Employment: Added 177,000 jobs in April
Inflation: Core PCE index increased by 2.6% compared to the same period last year
Despite the decline in GDP, the labor market remains stable. However, President Trump's new tax policies have raised concerns about the possibility of recession. The Fed is expected to keep interest rates unchanged at this meeting and may consider cutting rates by the end of the year, depending on further economic developments.
💬 Market reactions
Gold price: Increased to the highest level in two weeks, reaching $3,357.63/ounce, due to safe-haven demand and a weaker USD.
Bond market: Short-term bond yields decreased, reflecting market expectations of potential rate cuts in the future.
Stocks: The S&P 500 index fell after a nine-day consecutive increase, as investors await signals from
🕵️♂️ Predictions from experts
Chairman #JeromePowell: Expected to maintain a cautious stance, emphasizing inflation control and labor market stability.
Market expectations: Some analysts predict the Fed may start cutting rates in July or December, depending on subsequent economic data.