Overview

• The Federal Open Market Committee kept its benchmark rate at 4.25%–4.50% for a fifth consecutive meeting and indicated cuts are not on the immediate horizon.
• Fed Chair Jerome Powell highlighted tariff-driven inflation risks and urged patience on rate reductions to avoid harming the labor market.
• Governors Christopher Waller and Michelle Bowman dissented with calls for a 25-basis-point cut, marking the first multi-member split since 1993.
• U.S. equity benchmarks saw modest moves, with the S&P 500 down 0.1%, the Dow off 0.4% and the Nasdaq edging up 0.1%, while Treasury yields ticked higher.
• After-hours earnings beats from Microsoft and Meta Platforms lifted futures and shifted focus to upcoming PCE inflation and weekly jobless claims figures.