#FOMCMeeting

FOMC Meeting: The Fed's Great Balancing Act

In its May 6–7 meeting, the Federal Reserve kept interest rates steady at 4.25%–4.50%, opting for a cautious approach amid economic uncertainties. Despite President Trump's calls for rate cuts to stimulate growth, the Fed remains vigilant about inflation risks, especially with recent tariff implementations. (EY India, MarketWatch)

Fed Chair Jerome Powell emphasized the need to monitor incoming data before making policy shifts, highlighting concerns over potential stagflation—a mix of high inflation and rising unemployment. Market expectations for a rate cut have now shifted toward the July meeting, with diminishing odds for a change in June. (Investopedia, Kiplinger)

As the Fed navigates these challenges, investors and policymakers alike await clearer economic signals to guide future decisions.