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The Fed Opts Not To Cut Interest Rates Again—Even As Trump Ups Attacks On Fed Boss Powell

1. Federal Reserve holds interest rates steady at 4.25%-4.5% despite Trump’s demands. 2. Projected unemployment and inflation rates are at multi-year highs. 3. Economic growth forecasted to decrease from 1.7% to 1.4% for Q4. 4. Goldman Sachs predicts inflation may rise to 3.3% by December. 5. Fed maintains expectation of two rate cuts this year despite bearish outlook.

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FAQ

Why Bearish?

The Fed's decision to hold rates and lower GDP forecasts signals potential economic slowdown, impacting corporate earnings across S&P 500 companies.

How important is it?

Volatility in interest rates directly affects S&P 500, influencing investor sentiment and valuations of growth stocks, which dominate the index.

Why Short Term?

Market reactions to Fed decisions are often immediate, and a hold on rates amid low growth expectations can lead to short-term downward pressure on stock prices.

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