The day’s outcome shows the Dow Jones Industrial Average index fell by 0.10% and the Nasdaq dropped by 0.03%, while the broader S&P500 gained 0.13%.
The Federal Reserve decided to maintain the interest rate between 4.25% and 4.50%, despite objections from Donald Trump, who again insulted the central bank’s chairman, Jerome Powell, while waiting for more information on the effects of the tariff increases decided by the White House.
This decision was anticipated, though Powell noted an “unusually high” level of uncertainty and pointed out that short-term inflation expectations rose due to tariffs.
The Fed meeting was “clearly the focus today,” stated Angelo Kourkafas from Edward Jones.
“There were no major surprises. The Federal Reserve remained expectant,” he added.
“The initial [Wall Street] reaction was positive,” he highlighted.
However, this optimism faded with the central bank’s economic forecasts.
“Tariffs will push prices up and weigh on economic activity,” said Powell.
The Fed now anticipates U.S. economic growth of 1.4% in 2025, down from 1.7% in March and 2.1% in December 2024. It also predicts inflation to rise to 3%, above the 2.7% expected in March and the 2% target.
The ongoing conflict with Iran, which Israel has combined with attacks on Gaza, is “another factor keeping investor sentiment very low,” according to Kourkafas.
The Iranian leader, Ali Khamenei, stated today that his country would “never” surrender to Israel, which has increased air strikes on Iran, before being targeted again by hypersonic missiles.
In the White House garden, Trump told reporters his patience with Iran was “running thin,” yet left uncertainty over whether the U.S. would join Israel in attacks on Iran.
