US Fed Meeting Highlights: Wall Street ends higher after Fed holds rates, signals no rush to cut

US stocks closed higher on Wednesday after the Federal Reserve kept interest rates unchanged and signaled it’s in no rush to cut, citing a resilient economy.

The Dow Jones Industrial Average gained over 280 points, or 0.7%, closing near 41,113, according to preliminary data from FactSet.

The S&P 500 rose 0.4%, ending around 5,631, while the Nasdaq Composite edged up 0.3% to finish near 17,738.

The session was marked by volatility as investors digested the Fed's stance on inflation and rate policy.

There’s no rule that says the Federal Reserve Chair and the US President need to get along — and Fed chief Jerome Powell made it clear on Wednesday he’s not seeking presidential approval anytime soon.

Amid ongoing friction with Donald Trump, who has repeatedly criticized and even threatened to fire him, Powell firmly stated, “I’ve never asked for a meeting with any president and never will.”

“Maybe some have done so, but I can’t imagine myself doing that,” he added, underscoring the Fed’s independence from political influence.

(From CNN)

Federal Reserve Chair Jerome Powell on Wednesday acknowledged that while the U.S. economy appears healthy today, the impact of rising uncertainty could emerge in the coming months.

“It may well [get worse]. It just hasn’t shown up yet,” Powell said during his press conference.

He noted that both businesses and households are increasingly cautious and postponing key economic decisions.

“If that continues, and nothing happens to alleviate those concerns, you’d expect it to begin to show up in the data — not overnight, but over weeks and months,” he added. “And that may be what happens. But it hasn’t happened yet.”

Fed Chair Jerome Powell opened his post-meeting press conference with a stark warning: the recently announced tariff hikes are “significantly larger than anticipated” and could derail economic stability.

If sustained, the tariffs could lead to higher inflation, slower growth, and rising unemployment, Powell said. While some price pressures may be temporary, the Fed is preparing for the possibility that inflation could persist depending on the scale and duration of the tariffs.

The uncertain, shifting nature of the tariffs — largely tied to President Trump’s evolving trade stance — is clouding the Fed’s outlook. Powell noted that maintaining historically high tariffs could make it harder for the Fed to keep both inflation and unemployment in check.

“The risks to higher inflation and unemployment have increased,” he cautioned.

Fed Chair Jerome Powell said the central bank isn’t in a hurry to change interest rates, stressing on a cautious approach amid ongoing uncertainty.

“There is so much we don't know,” Powell said during his post-meeting remarks. “We are in a good position to wait and see.”

The US Fed’s latest statement said uncertainty has 'increased further', marking an escalation from March’s language. It also acknowledged 'swings in net exports' while maintaining that growth continues at a 'solid pace'.

In a notable shift, the US Fed said risks of both higher unemployment and higher inflation have risen -- highlighting concern over potential stagflation as President Donald Trump’s trade war continues. This language did not appear in the March statement.

“The Fed remains in a holding pattern, supported by better-than-expected jobs data,” said Ashish Shah, CIO of Public Investing at Goldman Sachs Asset Management, according to Reuters. He added that labor market weakness -- needed to resume rate cuts -- may take months to appear.

The Dow pared its 400-point rally, ending just 40 points higher, or 0.1%. The S&P 500 slipped 0.3%, while the Nasdaq dropped 0.9% as tech stocks lagged.

In its statement, the Fed cited a growing risk of both higher unemployment and inflation, raising concerns over potential stagflation. The central bank also noted that “uncertainty about the economic outlook has increased further.”

Meanwhile, the yield on the 10-year Treasury dipped to 4.26%, as investors moved into safer assets. All eyes are now on Jerome Powell’s press conference for further cues.

For the first time, the US Fed flagged that 'swings in net exports' have affected economic data -- an apparent reference to the impact of President Donald Trump’s tariffs. Still, it maintained that activity continues to expand at a 'solid pace'.

The Fed said economic activity continues at a 'solid pace' despite trade-driven swings in exports. It said there is an increased uncertainty, rising risks of both inflation and joblessness. The policy vote was unanimous.

U.S. stocks were mixed on Wednesday after the Federal Reserve kept interest rates unchanged, pointing to rising uncertainty in the economic outlook.

The Dow Jones rose 295 points, or 0.7%, driven by a 10% jump in Disney shares following a surprise surge in streaming subscribers.

The S&P 500 added 0.3%, while the Nasdaq slipped 0.1% as traders also kept a close eye on ongoing U.S. trade negotiations.

The Fed left its benchmark rate steady at 4.25%–4.5%, where it has remained since December.

The Federal Reserve kept interest rates unchanged at 4.25%–4.5%, amid early signs of economic slowdown from Trump’s trade war. The central bank continues its wait-and-watch approach amid policy uncertainty.

The US Federal Reserve has decided to hold interest rates steady, keeping the benchmark rate in the range of as widely expected.

The U.S. dollar bounced back on Wednesday, rising 1.3% against the Taiwan dollar to trade at 30.37, following a 3% gain on Tuesday. This comes after the Taiwan dollar surged 9% between Friday and Monday, touching a three-year high.

Despite the rebound, the greenback is still down over 5% versus the Taiwan dollar in the past week.

The dollar also climbed 1.2% against the Korean won, though the won remains 2.8% stronger over the week.

The U.S. economy is under growing pressure, with rising risks of higher inflation and weakening job growth, warned Fed Governor Adriana Kugler on April 22. Speaking at an event in Minneapolis, she said the latest tariff hikes are “significantly larger” than expected and are likely to have a bigger economic impact than previously thought.

(From CNBC)

As the Federal Reserve gets ready to announce its next move on interest rates, borrowing costs for everyday consumers remain steep.

The yield on the 10-year Treasury note, an important benchmark, is just under 4.3%, much higher than the 2% seen in March 2022, when the Fed first began raising rates.

Mortgage rates: A 30-year fixed loan now averages around 6.9%, up from 4.29% in 2022.

Credit cards: Average interest rates are hovering near 20%, compared to 16.3% two years ago.

Savings (CDs): A five-year CD pays around 1.69% now, better than the 0.5% in early 2022 but less than the 2.87% seen last September.

If major tariffs return, job losses and a rise in unemployment wouldn’t be a surprise, said Fed Governor Christopher Waller in an April 24 interview with Bloomberg. He added that significant labor market weakness could prompt more, and earlier, interest rate cuts.

Alphabet slid 8% after Apple’s Eddy Cue revealed the company is exploring an AI-powered revamp of its Safari browser, sparking concerns for Google’s search dominance, Bloomberg reported.

Disney jumped 11% after its fiscal Q2 earnings came in at $1.45 per share, beating LSEG estimates of $1.20.

Arista Networks fell 6% despite a solid profit beat, as its first-quarter revenue just edged past expectations.

While the US Federal Reserve has held interest rates steady since its December meeting, other major central banks have begun easing policy to counter trade-related economic headwinds.

The European Central Bank has cut rates three times this year, with its latest move aimed at offsetting the impact of trade policy uncertainty and rising tariffs, ECB President Christine Lagarde said.

On Wednesday, the People’s Bank of China also lowered interest rates as its economy faces mounting pressure from 145% US tariffs. The Chinese government recently reported a sharp decline in factory output. In retaliation, China has imposed 125% tariffs on most US goods, further straining the global economy.

The Bank of England is widely expected to follow with a rate cut on Thursday, while the Bank of Japan held rates steady this month after raising them in January — bucking the global easing trend.

Goldman Sachs expects the U.S. Federal Reserve to begin cutting interest rates in July, followed by additional cuts in September and October, according to a report by CNBC.

“It will take a couple of months for enough hard data evidence to accumulate to make the case for a cut,” said David Mericle, economist at Goldman Sachs, in a note to clients.

Despite slowing economic indicators, the firm believes inflation concerns will outweigh growth risks in guiding the Fed’s decisions.

US stocks were largely unchanged on Wednesday as investors awaited the Federal Reserve’s interest rate decision and tracked developments in U.S. trade talks.

The S&P 500 and Nasdaq Composite hovered near the flatline, while the Dow Jones Industrial Average rose 154 points, or 0.4%, buoyed by a 10% surge in Disney shares following a surprise jump in streaming subscribers.

The Fed is set to announce its monetary policy decision at 2 p.m. ET, with market expectations overwhelmingly pointing to a pause in interest rates, according to CME’s FedWatch tool.

With over 18,000 trading days under his belt, Warren Buffett has brushed off the latest bout of market volatility as “insignificant” in the grand scheme of investing.

The legendary investor stressed the importance of maintaining a long-term perspective, cautioning investors against reacting emotionally to short-term market swings. Buffett reiterated his timeless advice: avoid panic, stay diversified, and stick to a consistent investment strategy, no matter the headlines.

(From CNBC-TV18)

US Treasury Secretary Scott Bessent declined to provide specifics on the status of ongoing trade negotiations during his testimony before the House Financial Services Committee on Wednesday.

Pressed by Rep. Nydia Velázquez for an update, Bessent responded, “It would be detrimental to the interest of the United States,” citing the sensitive nature of the talks. He added, “Negotiations may still be in process as we speak, as we are not at the end of the week yet.”

Bessent is scheduled to travel to Switzerland on Thursday for a key meeting with Chinese officials on Saturday, accompanied by US Trade Representative Jamieson Greer.

Of the 18 trade deals under consideration, Bessent said several are in “quite advanced” stages, but noted that any initial pacts would be “agreements in principle” and finalized over the coming months.

(From CNN)

Federal Reserve Chair Jerome Powell didn’t say “stagflation” during March’s post-meeting press conference, but markets heard it loud and clear.

The Fed’s updated projections signaled slower economic growth alongside higher inflation, setting off alarm bells about stagflation: a toxic mix of stagnating growth and rising prices. While the March forecast still pointed to modest growth, recent economic data has only deepened concerns.

The Commerce Department recently reported the first contraction in U.S. GDP since 2022, driven in part by new and proposed tariffs from the Trump administration, which are weighing heavily on business activity.

“The level of tariff increases announced so far is significantly larger than anticipated,” Powell warned last month. He noted the uncertainty could cause lasting economic damage, and while tariffs are expected to push prices up, it's unclear if this will be a one-time bump or a broader inflationary trend.

Fitch Ratings has sharply reduced its U.S. economic growth forecast for 2025 to 1.2%, down from 2.8% in 2024, and expects the Federal Reserve to hold off on cutting interest rates until late in the year.

“The Fed will likely wait until the fourth quarter before cutting rates,” said Brian Coulton, Chief Economist at Fitch, citing rising inflation pressures fueled by new tariffs.

Fitch now projects U.S. inflation to climb above 4% by year-end, with Coulton cautioning that rising household inflation expectations could make it harder for the Fed to ease policy without undermining its credibility.

(From CNBC-TV18)

The yield on the 10-year U.S. Treasury edged down to 4.30% from 4.32%.

The U.S. dollar index rose 0.1% to 99.45, reflecting slight strengthening against major currencies.

West Texas Intermediate crude futures dropped 0.6% to $58.75 per barrel, giving up some of Tuesday's rally. Crude hit a four-year low earlier this week after OPEC+ agreed to increase production.

Gold futures declined 0.7% to $3,400 per ounce, snapping a three-day winning streak.

Strategy (MSTR) gained 2%.

Coinbase Global (COIN) and MARA Holdings (MARA) also advanced in early trade.

Amazon (AMZN) climbed more than 1%.

Alphabet (GOOG), Meta (META), and Tesla (TSLA) edged slightly higher.

Microsoft (MSFT), Apple (AAPL), Nvidia (NVDA), and Broadcom (AVGO) slipped modestly.

The US manufacturing sector weakened further in April, with the ISM Purchasing Managers' Index (PMI) falling to 48.7, down from 49.0 in March, marking its lowest level in five months.

The PMI tracks month-on-month changes in manufacturing activity, and any reading below 50 indicates contraction. April’s decline signals continued pressure on the industrial economy amid broader economic uncertainties.

Credit card spending data for April presents a mixed picture of the US consumer, with signs of a potential slowdown in discretionary activity.

According to JPMorgan analyst Richard Shane, Chase Spending rose 2.3% year-on-year through April 29, a slight dip from March’s 2.7% gain. Shane attributed part of the slowdown to lower gas prices. He also noted uneven daily trends, with 10 days of above-average spending and 15 days of below-average activity compared to year-to-date levels.

Citi analyst Paul Lejuez observed a broader decline in consumer spending during the February–April quarter, a key period for many retailers, though he added that spending appeared to rebound at the end of April.

(From CNBC)

U.S. stocks advanced on Wednesday as investors awaited the Federal Reserve’s interest rate decision and tracked fresh developments in U.S.-China trade negotiations.

The Dow Jones Industrial Average rose 160 points, or 0.4%, while the S&P 500 gained 0.2%. The Nasdaq Composite remained flat, reflecting a cautious tone in the tech sector.

Even if rate cuts are on the table down the line, Fed veterans say the central bank may still sound hawkish now, to manage inflation expectations and avoid fueling wage-price spirals.

“Even if I were thinking I want to look for a way to cut, I would talk hawkish because I want to keep these inflation expectations anchored,” said Robert Kaplan, former Dallas Fed President, as quoted by WSJ.

Some former Fed officials believe the trigger point for action would be clear deterioration in the labor market.

“If you see a notable deterioration in the labor market, at that juncture the Fed will be prepared to move,” said Lael Brainard, a former Fed governor told WSJ.

While no change in rates is expected today, investors will be closely parsing Powell's language for signals on future moves. The Fed must tread carefully: acting too early could reignite inflation, while waiting too long could deepen a potential recession.

“This is not going to be a cycle where the Fed pre-emptively cuts because there’s a forecast of a slowdown,” said Richard Clarida, former Fed Vice Chair told WSJ.

Global markets saw mixed moves on Wednesday as investors awaited the US Federal Reserve’s interest rate decision and monitored progress on upcoming US-China trade talks.

Chinese stocks ended higher, lifted by fresh stimulus measures from Beijing aimed at propping up its slowing economy, a move that helped counteract the drag from US tariffs.

In contrast, European markets in London, Paris, and Frankfurt dipped amid investor caution ahead of the Fed’s announcement.

Geopolitical jitters in South Asia also shook sentiment. Pakistan’s Karachi Stock Exchange plunged over 6% at open on reports of intensified cross-border shelling with India, later trimming losses to close about 3% lower.

India’s Sensex edged up roughly 100 points.

Wall Street looked set for a positive open on Wednesday as the US Federal Reserve concludes its two-day policy meeting, with markets expecting no change in interest rates, despite renewed calls from President Trump for a cut amid ongoing trade tensions.

Ahead of the opening bell, futures for the S&P 500 and Nasdaq rose 0.6%, while Dow Jones futures gained 0.7%.

Global stocks held firm on Wednesday, while oil prices edged higher amid news of an upcoming meeting between top U.S. and Chinese trade officials, a move seen as a potential de-escalation in the ongoing trade war.

However, caution prevailed in Europe. The dollar slipped for a fourth straight session, and European equities softened as investors remained sceptical about a breakthrough ahead of the U.S. Federal Reserve’s rate decision.

U.S. Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer are set to meet China’s top economic official this weekend in Switzerland. “My sense is this will be about de-escalation,” Bessent said, though Beijing struck a more cautious tone, citing the proverb: “Actions speak louder than words.”

Markets, especially outside the U.S., are showing restraint, with analysts noting the usual hesitation that precedes a Fed policy announcement.

The US economy shrank at an annualised rate of 0.3% in Q1 2025, while manufacturing activity declined for a second consecutive month in April, with the ISM PMI falling to a five-month low of 48.7.

Yet, the Fed may find reassurance in signs of easing inflation and a resilient labour market. April payrolls rose by 1,77,000, and the Fed’s preferred inflation gauge, the PCE Price Index, was flat in March after a 0.4% increase in February. On a yearly basis, PCE rose 2.3%, down from 2.7% the month before.

The Federal Reserve began raising interest rates in 2022 to tame soaring inflation, lifting them from near zero to a two-decade high of 5.25%–5.5% by July 2023. As inflation began to ease, the Fed signaled plans to lower rates.

However, by December, it became clear that inflation wasn’t falling fast enough. The Fed warned that any rate cuts would happen gradually. By March 2025, the central bank stuck to its projection of just two cuts this year, half the number it anticipated back in September.

The US dollar strengthened against traditional safe-haven currencies like the yen and Swiss franc, while holding firm against the euro, as markets braced for the Federal Reserve’s policy announcement and ongoing tariff negotiations.

Meanwhile, US Treasury prices edged higher following a strong 10-year note auction, signaling sustained demand for government debt despite trade war-induced jitters.

Powell’s tone: Does he sound more hawkish or dovish?

Tariff talk: Any signal on how trade policy is factoring into forecasts?

Forward guidance: Will the Fed hint at a July pivot?

Market reaction: Especially in bonds, gold, and tech stocks

US stocks declined on Tuesday as the Federal Reserve kicked off its two-day policy meeting, with investors on edge over how President Trump’s tariffs might sway the central bank’s stance on interest rates and the economic outlook.

The S&P 500 fell around 0.8%, the Dow Jones shed nearly 400 points (1%), and the Nasdaq Composite dropped 0.9%, reflecting broad market caution.

Trump’s recent tariff offensive, including sweeping ‘reciprocal’ duties on trading partners, has created a fresh challenge for the Fed.

‘You’re seeing a stagflationary shock with the tariffs,’ Don Rissmiller of Strategas told Morningstar. ‘That’s a problem for both mandates.’

Tariffs raise inflation: Higher import costs could push prices up.

But they may slow growth: Weaker trade could hit manufacturing and hiring.

Despite mounting political pressure, the Fed is expected to keep interest rates unchanged at 4.25%–4.5%, the same level held since December 2024. Officials cite two main reasons:

Strong labour market: The US added 177,000 jobs in April, keeping the unemployment rate steady at 4.2%.

Inflation in check: Core PCE inflation stands at 2.6%, still above the Fed’s 2% target but gradually cooling.

Policy outcome: May 7, 2 PM ET (11:30 PM IST)

Live stream: Federal Reserve’s YouTube and official social channels

Press conference: Powell will address the media post-announcement

The Fed is expected to hold rates steady at 4.25-4.50%, but this is no ordinary pause. GDP shrank slightly in Q1, job growth is softening, and core PCE inflation still hovers at 2.6%. Add in a fresh round of Trump-era tariffs, including 100% levies on EVs and electronics, and Powell’s challenge is clear: walk a tightrope without tipping over the economy or markets.

Gold prices dipped on Wednesday as investor appetite for safe-haven assets waned amid renewed optimism over U.S.-China trade talks. The slide comes ahead of the U.S. Federal Reserve’s policy decision later today.

As of 06:28 GMT, spot gold was down 1.2% at $3,389.37 per ounce, reversing part of Tuesday’s nearly 3% surge.

All eyes now turn to the Federal Open Market Committee (FOMC) meeting, where the Fed is expected to hold rates steady.

The US Federal Reserve will wrap up its two-day policy meeting today, with the interest rate decision scheduled for 11:30 pm IST (Wednesday, May 7). This crucial update comes as inflation remains stubborn and political pressure mounts, especially from President Donald Trump, who continues to push for rate cuts amid a growing tariff war.

The Jerome Powell-led Federal Open Market Committee (FOMC) is widely expected to hold the benchmark interest rate steady at around 4.3%, following its March decision to maintain rates in the 4.25–4.50% range for the second consecutive time.

While no immediate change is expected tonight, Fed officials have revised their projections for the rest of the year, now signaling a 50 basis point rate cut in 2025.

Stay tuned for the Fed’s rate verdict, Powell’s press conference, and real-time market reaction right here.