Overview

• The Federal Reserve announced it will maintain its interest rate range of 4.25–4.50%, defying President Trump's demands for immediate cuts.
• Fed Chair Jerome Powell emphasized the need to assess the inflationary impact of Trump's aggressive tariff policies before adjusting rates.
• The U.S. economy contracted by 0.3% in Q1 2025, raising concerns about a potential recession as consumer confidence hits its lowest level since 2020.
• Trump briefly threatened to fire Powell over the Fed's stance but later retracted the threat, highlighting tensions over central bank independence.
• Markets anticipate 2–3 rate cuts in the latter half of 2025, contingent on clearer data regarding tariffs' effects on inflation and growth.