$Fed Holds Steady on Rates Amid Uncertainty: My Take on the May #FOMC Meeting

The Federal Reserve wrapped up its May 6–7, 2025, #fomc meeting with no surprises—interest rates are staying put at 4.25%–4.5%. That decision was widely expected, but what stood out to me was the cautious tone from Chair Jerome Powell. He pointed to the ongoing uncertainty around Trump’s proposed tariffs and persistent inflation pressures.

From my perspective, Powell's remarks suggest the Fed is in no rush to shift gears. Markets have now pushed back their expectations for rate cuts to at least June. Strong job numbers and a gradual cooling in inflation give the Fed some breathing room, but the tariff situation could easily change the outlook.

Risk assets reacted with some hesitation—gold and crypto markets remain volatile, and S&P futures edged slightly lower after the announcement. Personally, I’ll be watching the June 17–18 meeting closely. If inflation data continues to trend downward and tariff threats escalate, we might finally see some movement on rates. Until then, it’s all about staying alert and reading between the lines of Fed speak.