Fed Holds

• The Federal Reserve unanimously decided to keep interest rates steady at a range of 3.5% to 3.75% during its first meeting under new chair Kevin Warsh. • Despite the hold, the Open Markets Committee signaled a potential rate hike before the end of the year, citing that economic activity is currently expanding at a "solid pace." • US stock markets reacted negatively to the signal of future tightening, experiencing a drop on Wednesday afternoon.

US central bank makes decision in first meeting under new chair and Trump appointee Kevin WarshThe US Federal Reserve left interest rates unchanged for the fourth time this year after its first meeting under new chair, Kevin Warsh, a Donald Trump appointee who has taken over the central bank during a tumultuous time for the US economy.“Economic activity is expanding at a solid pace despite elevated uncertainty that owes, in part, to the conflict in the Middle East,” the Fed’s open market committee said in a short statement. “Productivity growth and capital investment are strong. Job gains have kept pace with the workforce, and the unemployment rate has changed little.” Continue reading...

• US stocks traded within a narrow range on Wednesday as investors remained cautious ahead of the Federal Reserve's upcoming policy decision. • Oil prices remained below $80 per barrel, driven by market optimism regarding a potential peace agreement between the US and Iran. • The stability in the market reflects a balancing act between anticipation of interest rate changes and geopolitical hopes for stability in the Middle East.

• The FOMC announced on May 10, 2026, that it is leaving the federal funds rate unchanged at 5.25-5.50%, aligning with market expectations amid ongoing inflation monitoring. • Fed Chair Jerome Powell is scheduled to hold a press conference at 2:30pm ET to discuss the decision and economic outlook. • This marks the latest in a series of steady rate holds, reflecting a cautious approach to balancing growth and price stability in the US economy.

• The U.S. Federal Reserve maintained its federal funds rate in the 3.50%-3.75% range at its April 2026 policy meeting. • Decision balances heightened inflation uncertainty, a softening labor market, and geopolitical risks from the Middle East. • Markets remain volatile under President Trump due to tariffs, tax policies, oil price swings, and conflicts, yet stocks have held steady overall.

• The Federal Reserve maintained interest rates at 3.50%-3.75% last week, citing continued economic expansion but persistent inflation linked to energy prices. • Inflation remains elevated with PCE price index up slightly in March to 3.5% year-over-year. • Decision supports market optimism, contributing to S&P 500 nearing its January record high despite Middle East risks.

• The Federal Reserve maintained interest rates unchanged at its latest meeting but signaled a more hawkish stance, shifting investor sentiment regarding future policy direction. • Tech sector earnings continued to show strong numbers, though stock market reactions remained mixed, with the S&P 500 rising 1% for the week as equities powered through higher oil prices and a backup in yields. • Fed Chair Jerome Powell announced he will not retire after his term ends next month, committing to serve as a constructive governor rather than a shadow Fed chair.