Wall Street Breakfast Fed holds rates with little sign of urgency
Jan 29, 2025
The Federal Reserve decides to keep interest rates unchanged, leaving many curious about future moves. Powell's remark about having 'no contact' with Trump adds to the intrigue. Meanwhile, NVIDIA faces potential sales restrictions to China, raising questions about its market strategy. In the tech sector, Alibaba reveals impressive new AI innovations. Investors are also watching cautious stock valuations as industry leaders weigh in on the rapidly changing economic landscape.
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Fed Holds Rates Steady
- The Federal Reserve kept interest rates steady, as predicted, with Fed Chair Jay Powell leaning dovish.
- Markets anticipate a potential quarter-point rate cut in 2025, possibly in June, but odds of maintaining steady rates increased.
Rate Cut Predictions
- Wells Fargo economists predict another 50 basis points of easing by the end of 2025, split between September and December.
- Jeffrey Gundlach suggests a maximum of two rate cuts this year, with one being the base case.
Powell Avoids Politics
- Powell refused to comment on Trump's demand for immediate rate cuts, stating no contact with him.
- Powell reaffirmed the Fed's independent action, assuring the public of their continued work.