Overview

• The Federal Reserve maintained its benchmark interest rate at 4.25%–4.5% and highlighted risks of higher inflation and unemployment linked to ongoing tariffs.
• Fed Chair Jerome Powell emphasized the central bank's independence from political pressure and its reliance on economic data for monetary decisions.
• Markets rallied as President Trump announced an imminent U.S.-U.K. trade deal and weekend trade talks with China aimed at tariff de-escalation.
• The Trump administration plans to modify Biden-era restrictions on AI chip exports, boosting tech stocks like Nvidia and Broadcom.
• Investors remain cautious as stagflation fears grow, with the Fed signaling a wait-and-see approach to future rate adjustments amid economic uncertainty.