May FOMC Meeting: Waiting For More Clarity

Summary

• As expected, the Federal Open Market Committee decided to keep its benchmark policy rate unchanged at 4.25%–4.50% at its May meeting.
• The Fed continues to see solid current labor market conditions, inflation moving sideways at a fairly low level, and longer-term inflation expectations well-anchored.
• Powell remains confident that the Fed is well positioned to wait for additional clarity on how trade policy will impact the economy, as the costs of postponing monetary action are low.

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By Seema Shah, Chief Global Strategist and Christian Floro, CFA, CMT, Market Strategist

As expected, the Federal Open Market Committee decided to keep its benchmark policy rate unchanged at 4.25%–4.50% at its May meeting.

The Fed continues to