Federal Reserve maintains rates, hints at possible cut or pause, stocks rebound, US dollar strengthens

From Investing.com: 2025-05-08 02:27:00

The Federal Reserve maintained the federal funds rate at 4.25%–4.50% amid trade uncertainty, expressing concern about inflation and unemployment. Fed Chair Powell emphasized a cautious approach, suggesting a rate cut or pause is possible. US stocks initially fell but rebounded during Powell’s press conference, while the US dollar strengthened slightly. Fed funds futures show reduced odds of a June rate cut but still expect long-term cuts. Trump’s trade announcement with a major country, likely the UK, drove market reactions in Asia, with mixed responses across asset classes. Gold rebounded amid lingering caution.



Read more at Investing.com: Stocks Rebound After Fed Pause, but US Dollar and Gold Diverge