The Federal Reserve (Fed) concluded its interest rate decision meeting at midnight Taiwan time today (8th), and Powell, as expected by the market, announced maintaining the federal funds rate in the 4.25-4.50% range unchanged, while emphasizing potential risks of rising unemployment and inflation.
Fed Policy Statement: Pressure Mounting on Dual Targets
Chairman Powell noted in the post-meeting statement that the current US economic outlook remains highly uncertain, with increased risks of rising unemployment and inflation, and the central bank has not faced such a tug-of-war between its dual targets (balancing full employment and price stability) for a long time.
He also unusually emphasized that if current trade and tariff policies remain unchanged, it would be detrimental to the balanced progress of inflation and employment targets this year, indicating that rate cuts are not appropriate under these circumstances.
If the already announced significant tariff increases continue to be implemented, it could lead to higher inflation rates, slower economic growth, and increased unemployment.
Regarding Trump's repeated calls to fire him, Powell directly stated at the press conference that the Fed will adhere to data-driven policy decisions and not be influenced by political pressure, refuting external concerns about Trump's influence on decision-making.
Tariff Impact and Tense External Economic and Trade Relations
Beyond the rate decision, the US tariff policy towards the global market is another key factor driving market sentiment.
Although Chinese Vice Premier He Lifeng will hold a new round of consultations with the US Treasury Secretary this week, which is drawing global attention, Trump again stated last night at the White House that he will not reduce tariffs on China for the sake of negotiations and remains ambiguous about exemptions, maintaining significant uncertainty in the long-term US-China trade relations.
Dow Jones Experiences Significant Fluctuations, US Stocks Rally at Close
Influenced by the rate decision and overall environment, Wall Street stocks experienced significant volatility. The Dow Jones Industrial Average surged 405 points intraday but lost its gains after the Fed's announcement, only regaining momentum at the close, with all four major indices ending higher. Closing indices are as follows:
- Dow Jones Industrial Average: 41,113.97 points (+284.97, +0.70%)
- S&P 500: 5,631.28 points (+24.37, +0.43%)
- Nasdaq Composite: 17,738.16 points (+48.50, +0.27%)
- Philadelphia Semiconductor Index: 4,386.36 points (+75.17, +1.74%)
Notably, Alphabet (GOOGL) plummeted 7.26% last night, as Apple admitted a first-time decline in Safari search volume, and considering the accelerating penetration of AI usage might impact search functionality.
Bitcoin Breaks Through $98,000
In the cryptocurrency market, Bitcoin briefly broke through $98,000, reaching a high of $98,379, the highest since late February. Other mainstream cryptocurrencies, however, saw slight declines.
- Ethereum: $1,823, down 1.03% in the past 24 hours
- XRP: $2.12, down 1.91%
- BNB: $602.41, down 0.26%
- SOL: $147.8, down 0.78%
