Fed to Hold Rates Steady as Pressures Mount

Bloomberg

May 07, 2025

Federal Reserve officials are widely expected to leave interest rates unchanged Wednesday as they await clarity on the Trump administration’s trade policies, a move likely to frustrate the president ...

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height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nFed to Hold Rates Steady as Pressures Mount\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-05-07 14:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.bloomberg.com/news/articles/2025-05-06/fed-to-hold-rates-steady-as-pressures-mount-decision-day-guide><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Federal Reserve officials are widely expected to leave interest rates unchanged Wednesday as they await clarity on the Trump administration’s trade policies, a move likely to frustrate the president ...</p>\n\n<a href=\"https://www.bloomberg.com/news/articles/2025-05-06/fed-to-hold-rates-steady-as-pressures-mount-decision-day-guide\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":".IXIC","symbol_name":"NASDAQ Composite","start_time":0,"source_url":"https://www.bloomberg.com/news/articles/2025-05-06/fed-to-hold-rates-steady-as-pressures-mount-decision-day-guide","article_id":"1128074816","we_media_id":null,"thumbnails":[],"rights":{"source":"lsy1584095487587","url":"https://www.bloomberg.com/news/articles/2025-05-06/fed-to-hold-rates-steady-as-pressures-mount-decision-day-guide","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=1128074816","pubTimestamp":1746597600,"columns":[],"sourceInfo":{"source_id":"lsy1584095487587","name":"Bloomberg"},"weMediaInfo":null,"summary":"Federal Reserve officials are widely expected to leave interest rates unchanged Wednesday as they await clarity on the Trump administration’s trade policies, a move likely to frustrate the president a","collect":0,"end_time":0,"defaultTopTitle":"bloomberg.com","property":[],"viewcount":null,"language":"en","relate_stocks":{".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index",".DJI":"道琼斯"},"translate_title":"随着压力加大，美联储将维持利率稳定","themeId":"f1929b9c21cc8b191431ec244ff6c9cd","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{".IXIC":1.1,".DJI":1.1,".SPX":1.1},"content_text":"Federal Reserve officials are widely expected to leave interest rates unchanged Wednesday as they await clarity on the Trump administration’s trade policies, a move likely to frustrate the president and anyone else seeking answers about the US central bank’s next move.An aggressive slew of tariffs on imported goods is denting consumer confidence, with households bracing for a potential spike in consumer prices and a weakening job market. Yet the latest data show inflation decelerated in March, while the unemployment rate remained steady in April.Fed officials have stressed in recent public comments that while uncertainty is unusually high, monetary policy is still in a good place to balance their goals of fostering maximum employment and stable prices.“Hard data is still holding up,” said Sarah House, senior US economist for Wells Fargo. “I think we’ll also hear that uncertainty is high in this environment, and they are ready to act — or not act — as needed to try and meet both sides of their mandate.”The Fed’s rate decision will be released at 2 p.m. Wednesday in Washington. Chair Jerome Powell will hold a post-meeting press conference 30 minutes later. Investors will listen closely for whether Powell repeats, as he has multiple times, that policymakers are in “no hurry” to adjust rates.Pricing in futures markets currently points to a quarter-point rate cut at the Fed’s July 29-30 meeting, and for two or three more by the end of the year. Economists surveyed by Bloomberg anticipate only two cuts, beginning in September.StatementIn their post-meeting statement, officials are likely to keep their benchmark rate in a range of 4.25%-4.5%, and repeat wording from their March 19 statement saying they are attentive to risks to both sides of their dual mandate.Some minor language changes might appear in the statement’s first paragraph describing economic conditions. An import-driven contraction in first-quarter gross domestic product will prevent the committee from repeating that overall economic activity “continued to expand at a solid pace.”What Bloomberg Economics Says...“We expect Powell to push back against market pricing and signal a renewed priority on price stability. Officials like Richmond Fed President Thomas Barkin and Fed Governor Adriana Kugler have voiced concerns that inflation expectations may be loosening. Add to that the solid April payroll print and there’s little pressure for a near-term cut.”— Anna Wong, Stuart Paul, Eliza Winger, Estelle Ou and Chris G. Collins.Still, Fed officials may again lean into signs of a “solid” labor market to justify their wait-and-see mode, after hiring exceeded expectations in April payrolls and unemployment remained at 4.2%.Policymakers are also likely to repeat that uncertainty around their economic outlook has increased, or remains high.Press ConferenceWith few changes to the statement language and no new set of economic projections at this meeting, investors will quickly turn to Powell’s press conference for clues about his willingness to consider rate cuts — and under what conditions.Diane Swonk, chief economist at KPMG, stressed that lessons from the pandemic price surge and the inflation shock of the 1970s are “ingrained in the Fed’s DNA,” and so will influence how policymakers respond to tariffs.Fed Chair Jerome Powell and President Donald TrumpIndeed, Powell has said in recent weeks — and could repeat Wednesday — that the central bank must “make certain that a one-time increase in the price level does not become an ongoing inflation problem.”Amid a major supply shock, “you don’t want to be too quick, or you could create a more pernicious bout of stagflation, and that’s definitely something they don’t want to do after working so hard to get inflation down to the levels it is today,” Swonk said.The Fed’s favored gauge of underlying inflation fell to 2.6% in the year through March, down from a 2022 peak of 5.6% but still above the central bank’s 2% target.Political FirePowell is also almost certain to face questions about the regular pressure and personal insults being leveled at him by President Donald Trump, and possibly about the president’s threats to fire him. Trump has backed away from the latter, repeating in an interview taped last week and aired on Sunday that he had no intention of seeking to dismiss the chair.He did, however, call Powell a “total stiff” over the Fed chief’s reluctance to cut rates, piling on the “major loser” barb he launched in April.Powell will likely seek to avoid any response that antagonizes the president and emphasize the Fed’s independence from elected officials in monetary policy deliberations.","kind":"news","is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}