The Federal Reserve left interest rates unchanged yesterday evening, as the central bank awaits clarity on the impact of tariffs.
Fed Chair Powell largely shrugged off the headline contraction in Q1 GDP, instead focusing on the robust growth in private domestic activity.
Amidst elevated uncertainty surrounding the effects of tariffs, Powell signalled a willingness to be patient and wait for further data.
Looking ahead, we expect momentum in the US economy to hold up, allowing the Fed to continue with its โwait and seeโ approach. Our central view is for one more rate cut this year.
Leave a Comment