U.S. futures climb ahead of key policy decision and trade talks
🏦 Fed Poised to Stand Pat on Rates
The U.S. Federal Reserve is widely expected to keep interest rates unchanged on May 7, as policymakers assess the fallout from President Trump’s aggressive tariffs.
Despite White House pressure for a rate cut, Fed Chair Jerome Powell and his colleagues have signaled a wait-and-see approach, preferring to monitor how measures like the 145% tariff on Chinese goods ripple through inflation and economic growth.
Economists agree: The Fed will likely hold steady until the economic effects of the tariffs are clearer.
📈 Futures Hold Gains Ahead of Fed Decision
U.S. futures are firmly in the green just hours before the Fed’s announcement:
- Dow Jones futures: +300 points
- S&P 500 futures: +36 points
- Nasdaq futures: +125 points
The rebound comes after a choppy Tuesday, when markets dipped on uncertainty but regained footing following news that Treasury Secretary Scott Bessent and the U.S. Trade Representative will meet with Chinese officials in Switzerland later this week—sparking hopes of revived trade talks.
Meanwhile, gold prices are seeing profit-taking as risk appetite returns, reflecting a more risk-on sentiment heading into the Fed meeting.
🔚 Conclusion: Markets Balance Fed Patience and Trade Hopes
As investors brace for the Fed’s decision, steady rates and potential trade diplomacy are buoying optimism.
With no immediate policy moves expected, the focus will shift to Powell’s commentary on how tariffs may shape future monetary policy—and whether progress in U.S.-China trade talks can ease market nerves.
Bottom line:
Markets are cautiously optimistic, but volatility could return quickly depending on Fed language and trade headlines later this week.
