Overview

• The Federal Reserve announced it will maintain the benchmark interest rate at 4.25%–4.5%, unchanged since December 2024.
• Chair Jerome Powell reaffirmed the Fed's independence, resisting President Trump's calls for immediate rate cuts to stimulate the economy.
• April's robust job growth, with 177,000 jobs added, supports the Fed's decision to hold rates steady despite mixed economic signals.
• Economists warn that newly implemented tariffs may increase inflation, complicating the outlook for potential rate cuts later in 2025.
• Financial markets, including cryptocurrency sectors, are bracing for volatility as investors react to the Fed's decision and ongoing political tensions.