CIO Notebook: Fed Acknowledges Higher Uncertainty And Increased Risk While Holding Rates Firm
2025-05-09 01:45:00 ET
Summary
- As expected, the Federal Open Market Committee (“FOMC”) maintained the fed funds target rate at a range of 4.25% to 4.50%.
- Chairman Powell admitted that while the Fed is worried about the potential for higher unemployment and higher prices, it is too soon to act on either based on the divergence between hard and soft data.
- Powell believes that monetary policy is in a good position and that while the Fed “can move quickly when that’s appropriate”, the bar seemed to be set a bit higher today for a June rate cut.
By Shannon L. Saccocia, CFA
The FOMC seems willing to be patient until it becomes clear through hard data that they need to shift their approach...
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