Latest news with #JeromePowell-led
News18
9 hours ago
- Business
- News18
US Fed Keeps Interest Rates Unchanged For 4th Time, Still Expects 2 Cuts This Year
Last Updated: Jerome Powell-led FOMC keeps its key interest rates unchanged at 4.25%-4.50% for the fourth time in a row, in line with the market expectations. US Fed Meeting Today Live: The US Federal Reserve on Wednesday kept its key interest rates unchanged at 4.25%-4.50% for the fourth time in a row, in line with the market expectations. As per the latest 'dot plot', the American central bank's officials continue to expect two rate cuts this year. The US monetary policy review comes amid tariff woes and geopolitical tensions like the Israel-Iran war. Fed officials continue to wait for the fallout of US President Donald Trump's sweeping policy changes and tensions in the Middle East. Fed policymakers overall continue to expect two rate cuts this year, according to the median projection, though seven of them expect no rate cut at all, up from four back in March. The US markets remained unchanged after the Fed decision. After the decision, the Dow Jones was trading higher by 0.29% and the Nasdaq was also up by 0.33%. In its statement, FOMC said, 'Although swings in net exports have affected the data, recent indicators suggest that economic activity has continued to expand at a solid pace. The unemployment rate remains low, and labor market conditions remain solid. Inflation remains somewhat elevated." The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook has diminished but remains elevated. The Committee is attentive to the risks to both sides of its dual mandate, it added. 'In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent," the FOMC said. Multiple Federal Reserve officials have signalled hesitation about cutting interest rates, citing concerns that Trump's proposed trade tariffs could reignite inflation. While inflation has eased substantially from its post-pandemic highs, it remains close to the Fed's 2% annual target—leaving policymakers wary of acting too soon. Talking about US Fed Chair Jerome Powell ahead of the interest rate decision, US President Donald Trump said, 'We have a stupid person at the Fed. He probably won't cut today… Maybe I should go to the Fed. Am I allowed to appoint myself at the Fed?" He added, 'I don't even think he's political, I think he hates me." The US economy shrank 0.3 per cent during the January-March 2025 quarter. The January-March expansion was the slowest in almost three years and was down from 2.4% in the last three months of 2024. In the previous monetary policy review in May, the US Federal Reserve had kept its key interest rates unchanged at 4.25-4.50 per cent for the third time in a row. However, in the March review, Fed officials updated their rate cut projections and saw 50 basis points rate cut in 2025.
News18
07-05-2025
- Business
- News18
US Fed Policy Meeting Today: Will Jerome Powell Bow To Trump's Pressure For Rate Cuts? What Analysts Say
Last Updated: Experts say while US President Donald Trump pushes for rate cuts, the US Federal Reserve is likely to remain cautious for now. US Fed Meeting May 2025: The US Federal Reserve will conclude its two-day policy meeting on Wednesday (May 7) and the announcement will be made at 11:30 pm today. The monetary policy review comes amid the tariff war and US President Donald Trump's pressure to cut rates. According to analysts, Jerome Powell-led Federal Open Market Committee (FOMC) is expected to keep its key short-term interest rate unchanged amid persistent inflationary pressures and political heat from the Trump administration. Currently, the Fed's benchmark rate stands at around 4.3 per cent, and most analysts expect no change this time. In the previous monetary policy review in March, the US Federal Reserve had kept its key interest rates unchanged at 4.25-4.50 per cent for the second time in a row. Along with the decision, officials updated their rate cut projections. They see 50 basis points rate cut in 2025. Mayank Mundhra, vice-president (financial risk management) and head (research) at Abans Financial Services Ltd, said, 'As the US Federal Reserve meets today, we expect it to keep interest rates unchanged in the 4.25–4.50 per cent range. April's strong job growth shows some resilience, but the US economy experienced a 0.3 per cent annualised contraction in Q1 GDP, signalling a slowdown. Inflation stands at 2.6 per cent, still above the Fed's 2 per cent target, and the risk of stagflation due to escalating trade tensions remains real." Jigar Trivedi, senior analyst at Reliance Securities, said, 'Investors will monitore trade tensions ahead of the highly anticipated FOMC decision scheduled for Tuesday, May 7 at 11:30 PM. While the Fed is widely expected to hold the fund rate steady, markets will be keenly focused on the Fed's forward guidance and its assessment of ongoing trade-related risks. Trade negotiations between the US and several Asian economies are set to resume this week, though talks with China remain stalled." The prolonged uncertainty has continued to weigh on investor sentiment, reflected in a slight decline in the U.S. Dollar Index to around 99.6, Trivedi added. 'On the economic data front, the ISM services index reported a sharp expansion in activity, accompanied by rising cost pressures – echoing the strength observed in last week's robust employment data. Meanwhile, the US trade deficit widened to a record $140.5 billion in March 2025, surpassing expectations of a $137 billion shortfall. Fed officials have acknowledged that sustained tariffs could push inflation higher while also dampening employment. However, the extent and duration of these effects remain uncertain and will likely be a topic of interest in tomorrow's policy statement and press conference," he added. Inflation in the US cooled in March, and the Fed's preferred inflation gauge stands at 3.6 per cent — down from the post-pandemic peak but still well above the Fed's 2 per cent target. According to analysts, the September 2025 meeting remains the more likely timeline for a cut but Fed officials have signalled flexibility depending on how inflation, labour markets, and trade dynamics evolve. First Published: May 07, 2025, 12:28 IST
Yahoo
09-04-2025
- Business
- Yahoo
Etsy (ETSY) and Snap (SNAP), Lyft (LYFT), Intel (INTC), Target (TGT) Stocks Trade Down, What You Need To Know
A number of stocks fell in the afternoon session after markets gave up early gains with optimism over progress in US-China trade talks quickly fading as the Trump administration announced plans to raise tariffs on all Chinese imports to well above 100%. Hopes had been lifted by chatter of constructive negotiations aimed at easing and eventually removing U.S. trade tariffs. But the news confirmed fears of a prolonged trade fight, increasing uncertainty about the direction of economic policy. This left investors grappling with the dual threat of slower growth and higher inflation, both of which could linger if the standoff continues. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Among others, following stocks were impacted: Online Marketplace company Etsy (NASDAQ:ETSY) fell 5.5%. Is now the time to buy Etsy? Access our full analysis report here, it's free. Social Networking company Snap (NYSE:SNAP) fell 7.1%. Is now the time to buy Snap? Access our full analysis report here, it's free. Gig Economy company Lyft (NASDAQ:LYFT) fell 5%. Is now the time to buy Lyft? Access our full analysis report here, it's free. Processors and Graphics Chips company Intel (NASDAQ:INTC) fell 6.7%. Is now the time to buy Intel? Access our full analysis report here, it's free. Large-format Grocery & General Merchandise Retailer company Target (NYSE:TGT) fell 5.8%. Is now the time to buy Target? Access our full analysis report here, it's free. Snap's shares are very volatile and have had 25 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The previous big move we wrote about was 20 days ago when the stock gained 5.5% on the news that stocks rebounded to start the session amid continued market volatility and moved slightly higher after the Federal Open Market Committee kept rates at 4.25% to 4.50% in its March 2025 meeting. The Jerome Powell-led committee also hinted at two more rate cuts for the year, saying, "Uncertainty around the economy has grown." The good news was that holding rates steady and signaling two additional cuts this year meant no surprises (the market dislikes surprises). The bad news was that the Fed reduced its outlook for growth to 1.7%, down from the previous projection of 2.1% in December. At the same time, the inflation outlook was raised to a 2.8% annual increase for core prices, up from the prior projection of 2.5%. This suggested the Fed saw the macro tilting towards a stagflation scenario, where inflation rises as economic growth slows. Snap is down 35.5% since the beginning of the year, and at $7.25 per share, it is trading 57.7% below its 52-week high of $17.14 from May 2024. Investors who bought $1,000 worth of Snap's shares 5 years ago would now be looking at an investment worth $548.40. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. We prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. Sign in to access your portfolio
Yahoo
31-03-2025
- Business
- Yahoo
Why Is Celsius (CELH) Stock Soaring Today
Shares of energy drink company Celsius (NASDAQ:CELH) jumped 8.9% in the afternoon session after Truist analysts upgraded the stock's rating from Hold to Buy and raised the price target from $35 to $45. The analysts added, "In our opinion, the market is already looking past the hiccups of the legacy business in 2024 and the brand's slowdown in 1Q25." The shares closed the day at $35.61, up 5.8% from previous close. Is now the time to buy Celsius? Access our full analysis report here, it's free. Celsius's shares are extremely volatile and have had 38 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The previous big move we wrote about was 12 days ago when the stock gained 5.7% on the news that stocks rebounded to start the session amid continued market volatility and moved slightly higher after the Federal Open Market Committee kept rates at 4.25% to 4.50% in its March 2025 meeting. The Jerome Powell-led committee also hinted at two more rate cuts for the year, saying, "Uncertainty around the economy has grown." The good news was that holding rates steady and signaling two additional cuts this year meant no surprises (the market dislikes surprises). The bad news was that the Fed reduced its outlook for growth to 1.7%, down from the previous projection of 2.1% in December. At the same time, the inflation outlook was raised to a 2.8% annual increase for core prices, up from the prior projection of 2.5%. This suggested the Fed saw the macro tilting towards a stagflation scenario, where inflation rises as economic growth slows. Celsius is up 30.7% since the beginning of the year, but at $35.56 per share, it is still trading 63% below its 52-week high of $96.09 from May 2024. Investors who bought $1,000 worth of Celsius's shares 5 years ago would now be looking at an investment worth $25,340. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Sign in to access your portfolio
Yahoo
29-03-2025
- Business
- Yahoo
Why Wayfair (W) Stock Is Down Today
Shares of online home goods retailer Wayfair (NYSE:W) fell 7.3% in the morning session after the Bureau of Economic Analysis reported that the Fed's preferred inflation gauge (the Personal Consumption Expenditures (PCE) price index) revealed core inflation came in hotter than expected, fueling fear of stagflation (an economic situation of slow growth and rising prices). Core inflation excludes food and energy prices. The Core PCE index showed inflation rose 2.8% (vs. estimates for a 2.7% increase) in February 2025 compared to the previous year and accelerated 0.4% (vs. estimates for a 0.3% increase) over the previous month. These figures added to concerns over proposed tariffs, which rattled markets all week. The combination of rising inflation and escalating trade tensions likely clouded the economic outlook, raising uncertainty for businesses and policymakers. The shares closed the day at $33.86, down 4.9% from previous close. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Wayfair? Access our full analysis report here, it's free. Wayfair's shares are extremely volatile and have had 51 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The previous big move we wrote about was 9 days ago when the stock gained 7.3% as stocks rebounded to start the session amid continued market volatility and moved slightly higher after the Federal Open Market Committee kept rates at 4.25% to 4.50% in its March 2025 meeting. The Jerome Powell-led committee also hinted at two more rate cuts for the year, saying, "Uncertainty around the economy has grown." The good news was that holding rates steady and signaling two additional cuts this year meant no surprises (the market dislikes surprises). The bad news was that the Fed reduced its outlook for growth to 1.7%, down from the previous projection of 2.1% in December. At the same time, the inflation outlook was raised to a 2.8% annual increase for core prices, up from the prior projection of 2.5%. This suggested the Fed saw the macro tilting towards a stagflation scenario, where inflation rises as economic growth slows. Wayfair is down 26.5% since the beginning of the year, and at $33.85 per share, it is trading 53.6% below its 52-week high of $72.94 from May 2024. Investors who bought $1,000 worth of Wayfair's shares 5 years ago would now be looking at an investment worth $650.84. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. We prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. Sign in to access your portfolio
