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Fed Meeting Starts Today—Here's Why You Shouldn't Expect Interest Rate Cuts Despite Trump's Demands

1. The Fed is expected to hold interest rates steady this week. 2. 97% odds predict no rate cut according to CME Group's FedWatch Tool. 3. Trump criticized Powell, calling for rate cuts but you can't legally fire him. 4. Inflation is at a four-year low, but tariffs may increase consumer prices. 5. Job growth remains robust, with 177,000 new jobs added last month.

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FAQ

Why Neutral?

Current expectations for rate stability reduce volatility but limit growth potential. Historical context shows market reacts mixed to Fed meetings that don't announce rate changes.

How important is it?

Fed decisions greatly influence market liquidity and corporate borrowing costs, impacting S&P performance directly. Current rate stability signals cautious optimism but potential stagnation.

Why Short Term?

Market reactions to Fed announcements typically occur immediately, affecting sentiment quickly. In longer terms, sustained policies will determine economic trends.

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