FED MEETING COVERAGE!

A MUST READ!

The Federal Reserve is expected to hold interest rates steady at its May 7-8 policy meeting, with the current target range being 4.25% to 4.50%. The spotlight will instead be on Fed Chair Jerome Powell's comments on the state of the American market, inflation and the possibility of a recession.

Key Points to Watch:

Powell's Remarks: Powell's post-meeting press conference will be crucial in understanding the Fed's stance on the economy and potential future rate decisions.

Inflation Concerns: The Fed has described the inflation caused by tariffs as "transitory," but some officials are concerned that inflation expectations could become "unanchored" if price pressures continue.

Trade Tensions: Trump's tariffs have sparked uncertainty, with potential implications for economic growth and inflation.

Rate Cut Expectations: Markets have nearly ruled out any changes to the federal funds rate this week, but there's a 31% probability of a rate cut in June and 80% by July .

Market Expectations:

No Rate Change: The CME Group's FedWatch tool assigns a 97% probability that the central bank will maintain its current target range.

Future Rate Decisions: Some economists believe rate cuts won't come until much later in the year, while others expect the Fed to hold rates steady until December .#TradeStories #MostRecentTrade