| The Fed holds interest rates steady at 4.25%–4.5% — despite pressure from Trump.
FED DECISION – May 7, 2025:
1. No cut (again): Rates unchanged for the 3rd straight meeting. No surprises.
2. Inflation still sticky: Fed admits prices are still “somewhat elevated.”
3. Foggy outlook: Uncertainty ahead. Even the Fed isn’t sure what’s next.
4. Upside risks: Rising unemployment + stubborn inflation = trouble.
5. Walking the tightrope: Fed watching both jobs + inflation closely.
6. Stagflation fears: Low growth + high prices? That word’s creeping in.
Context: Trump wants cuts. The Fed isn’t budging. They’re holding the line — for now.
Markets: eyes on Powell. Volatility incoming.