Overview

• The Federal Reserve kept its benchmark interest rate at 4.25–4.50%, citing economic uncertainty from President Trump's tariff policies.
• Fed Chair Jerome Powell warned that sustained tariffs could lead to higher inflation, slower growth, and increased unemployment.
• U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer will meet with Chinese officials in Geneva on May 8–9 for the first high-level trade talks in two months.
• China's central bank cut its reserve requirement ratio for the first time this year to support its economy amid trade tensions.
• Currency markets remain volatile, with the U.S. dollar down against major peers and Asian currencies stabilizing after recent fluctuations.