- FOMC retains rates that do not change for the third straight assembly.
- Powell admitted that the risks of unemployment, inflation increased.
- Powell noted the negative survey data but the FOMC said it would wait for changes in hard data.
- Nasdaq maintains moderate negative dynamic time speaking.
US stock indices mainly remained on Wednesday afternoon at Powell's Light of Federal Reserve (FED) press conference where he was stuck in his “wait-and-see” approach.
Powell extended the economic positives. He said the US manufacture market was close to the whole job and the inflation numbers were more healthy. However, he said the Federal Open Market Committee (FOMC) had to stay on the course and watch how the US economy dealt with the Trump management tariff policy.
FOMC has chosen to keep Fed fund rates unchanged, as expected, at 4.25% to 4.50% incurred earlier in the afternoon. This is the third straight meeting in which the committee decided to pause rates.
Noticed that tariff rates often change, Powell said the central bank will have to wait for the tariff policy to be the same before making major changes to the existing policy.
“The risk of increased unemployment and higher inflation has increased,” Powell said, but those risks may not lead to a significant impact on economic data.
The NASDAQ dropped 0.35% before the interest rate decision, but the pullback was almost twice as Powell admitted to a FOX business reporter that he was not sure that the FOMC would reduce interest rates this year. However, the NASDAQ index approached closer to even the Trump administration said it was considering the release of strollers made of baby and car seats from tariffs.
The Dow Jones Industrial Average (DJIA) has moved from a 0.3% gain to a 0.8% gain during speech, while the S&P 500 has waxed and weakened between a moderate loss and a moderate progress.
“We are in a good position to wait and see,” Powell repeated, reciting his favored phrase.
