4 Things The Fed Might Answer After May 2025's Rate Decision

(7min)

Summary

  • The Federal Reserve is expected to maintain the current interest rate, with a potential cut in the coming months due to slowing job growth and moderating inflation.
  • A stronger U.S. dollar is anticipated following the Fed's rate pause, which could alleviate import inflation risks and stabilize global trade.
  • Fed Chair Powell is likely to avoid commenting on White House tariffs, focusing instead on inflation metrics and the impact of weak energy prices.
  • Despite a negative Q1 GDP, the Fed may delay rate cuts, assessing the economic impact of tariffs and potential boosts from domestic manufacturing investments.
  • Looking for a helping hand in the market? Members of DIY Value Investing get exclusive ideas and guidance to navigate any climate. Learn More »
The Federal Reserve ( FED ) to control interest rates. Wooden blocks FED on coins with USA flag background. American economy and business. Federal Reserve Bank Interest rates rise policy. FED concept.

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On May 6-7, 2025, the Federal Reserve will meet to decide on its interest rate policy. Before that, the Bureau of Labor Statistics reported strong job growth in its report released on May 2. Few expect Fed Chair Powell to change the current target rate

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Chris Lau is an individual investor and economist with 30 years of experience covering life science, technology, and dividend-growth income stocks. He has degrees in Microbiology and Economics.

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