Steady Rates Amid Economic Challenges

The United States Federal Reserve is anticipated to keep its key interest rate unchanged at 4.25% to 4.5% during its May policy meeting. This decision marks the sixth consecutive meeting without any adjustments, as the central bank focuses on achieving its 2% inflation target.

Inflation and Economic Growth

Despite high core inflation and a slowdown in first-quarter GDP growth, the Fed remains cautious. The GDP decline was partly attributed to a surge in imports ahead of planned tariffs by President Donald Trump. With inflation slightly easing and a steady job market, expectations for multiple rate cuts this year have diminished.

Political Pressure and Future Outlook

President Trump has advocated for rate cuts, pointing to decreasing prices in sectors like energy and food. However, the Fed is likely to maintain its current stance, with all eyes on Chair Jerome Powell's upcoming press conference for any hints of future policy shifts.