Institution: The Federal Reserve remains on hold, continuing to observe, as political pressure to cut interest rates falls flat

ME News report: On May 2 (UTC+8), Clearwater Analytics Investment Platform Research Director Matthew Vegari said in a report that the Federal Reserve will keep interest rates unchanged at 3.50%-3.75%, indicating it will continue its “wait-and-see” strategy. A key takeaway from this meeting is that “the Federal Reserve is unwilling to ‘turn a blind eye’ to energy-driven inflation the way it did with earlier inflation triggered by tariffs.” He also noted that the White House’s plan to push the Fed to cut rates has backfired, because Powell will temporarily remain in his role as a Fed governor. “If the Fed cuts rates amid accelerating inflation, that decision will be driven by clear weakness in the labor market rather than political pressure.” (Source: Jinshi)