How the Fed’s Hold on Rates Is Affecting Stock, Bond, and Commodity Markets
From Investing.com: 2025-05-07 20:11:00
On May 7, 2025, the Federal Reserve decided to maintain the federal funds rate between 4.25% and 4.50%. The decision was influenced by concerns about inflation and unemployment, particularly due to Trump’s tariffs. The Fed emphasized uncertainty and bilateral risks, opting for a “wait and see” approach. This decision impacted various markets, with stocks initially volatile but ultimately closing positively, and the U.S. dollar strengthening. Sectors like technology and real estate are sensitive to interest rates, while duration management in fixed income is key. Investors should monitor economic data and Fed communications for potential changes in monetary policy.
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