Fed set to pause rate cuts again as concerns grow about Trump’s economic agenda

Recession has, once again, become the buzzword across Wall Street after President Donald Trump recently declined to rule one out, saying that Americans should expect “a period of transition” across the economy.

Since his comments, Trump administration officials have offered varying answers when asked about the likelihood of a recession, with Commerce Secretary Howard Lutnick saying, “I would never bet on recession. No chance.” However, Treasury Secretary Scott Bessent said Tuesday, “I can’t guarantee anything.”

Investors will be keen to hear where Federal Reserve Chair Jerome Powell stands on the matter. However, he’s unlikely to veer away from his usual script if asked about the odds of a recession.

The only thing Powell tends to say with conviction is that the US economy is not currently in a recession, which he testified in a Senate hearing last month.

“Would you, as an American, trade places right now with Germany in terms of the economy?” Republican Sen. John Kennedy asked Powell on February 11. “No, I sure wouldn’t,” he responded, later adding that he wouldn’t want to trade places with China or France either.

Even though US economic conditions have changed significantly since Powell made those comments, which could very well lead him to believe that the risk of a recession has risen, he’ll likely never say so.

That’s because even the most subtle suggestion that the economy is inching closer to a downturn could spook investors and work against the Fed’s mission.

Rather, Powell may opt to repeat what he said two years prior: “There’s always a probability that there will be a recession in the next year.”

Source link

Visited 1 times, 1 visit(s) today

Related Article

Post-Earnings Swings, Analyst Price Targets, and CapEx Focus

Over the past several quarters, one word has characterized the market’s reaction to Meta Platforms’ NASDAQ: META earnings reports: volatility. For four quarters in a row, Meta has gone back and forth between large post-earnings gains and falls. Meta Platforms, Inc. (META) Price Chart for Monday, May, 11, 2026 Get Meta Platforms alerts: Sign Up

Why Micron Stock Keeps Going Up

I think it’s official now: Micron (MU +5.64%) is a momentum stock. Granted, it’s not an ordinary momentum stock, one that just goes up and up primarily on positive headlines, but without revenue or earnings numbers to back up the rally. Fact is, Micron does have revenue and earnings growth. Sales surged 196% last quarter,

Transactions in connection with share buyback programme

Company announcementNo. 30/2026                                                  11 May 2026 Netcompany Transactions in connection with share buyback programmeOn 3 February 2026, Netcompany Group A/S (“Netcompany”) announced that a share buyback programme of up to DKK 750m and a maximum of 3,250,000 shares had been initiated with the purpose of adjusting Netcompany’s capital structure and meeting its obligations relating

The economic warning stock market bulls are probably forgetting

Stock market bulls should remember one important lesson: The economy could eventually reflect geopolitical realities, and one of those realities in today’s market is super-elevated oil prices. “The global economy has weathered the oil shock reasonably well so far. However, the risk of a recession will increase meaningfully if the Strait of Hormuz remains closed

Five Key Market Themes Investors Are Watching This Week

magnifying glass 3 ©Casey Fleser Markets face another busy week dominated by geopolitical tensions, inflation data, central bank developments and major corporate events. Investors are monitoring renewed friction between the United States and Iran, upcoming U.S. inflation figures, President Donald Trump’s planned trip to China, leadership changes at the Federal Reserve, and the expected stock

KOSPI rally backed by ‘real fundamentals’ amid semiconductor boom: finance minister

Finance Minister Koo Yun-cheol speaks during a press briefing at the Government Complex Sejong, Monday. Courtesy of Ministry of Finance and Economy The recent KOSPI rally is being driven more by improving semiconductor industry conditions and corporate earnings than by speculative overheating, Finance Minister Koo Yun-cheol said Monday, as the benchmark index extended its record-breaking

UK Investment Opportunities With AB Dynamics And 2 Other Stocks That May Be Trading Below Estimated Value

The United Kingdom’s stock market has experienced recent fluctuations, with the FTSE 100 index closing lower amid concerns over weak trade data from China and its impact on commodity-dependent companies. In this environment of uncertainty, identifying undervalued stocks can present opportunities for investors seeking potential value plays. Top 10 Undervalued Stocks Based On Cash Flows

Undervalued European Small Caps With Insider Action For May 2026

The European market has recently experienced modest gains, with the pan-European STOXX Europe 600 Index reflecting improved sentiment due to easing geopolitical tensions and strong corporate earnings, although concerns over potential U.S. tariffs loom. In this environment of fluctuating market dynamics, identifying small-cap stocks that are potentially undervalued can be crucial for investors seeking opportunities;

ET logo

us stocks today: Why are US stock market futures down today, and will S&P 500, Nasdaq and Dow Jones stay in red or turn green? Global tensions hit markets

Why are US stock market futures down today, and will S&P 500, Nasdaq and Dow Jones stay in red or turn green? Investors started the trading week with caution as US futures slipped after rising geopolitical risks in the Persian Gulf. Oil supply concerns and threats to shipping routes increased uncertainty. Diplomatic efforts between the

3 Middle Eastern Dividend Stocks Yielding Up To 7.0%

The Middle Eastern stock markets have recently experienced fluctuations, with UAE equities easing due to renewed tensions in the Gulf region. Despite these challenges, resilient local fundamentals and potential regional de-escalation could provide opportunities for investors seeking stable returns. In this context, dividend stocks can be attractive as they offer consistent income streams even amid

Caution! Overheated US CPI data may pull the stock market from a ‘Risk-On’ rally into a short-term selling trajectory.

If the CPI significantly exceeds expectations, the market may shift from ‘the Fed pausing rate cuts this year’ to ‘the Fed possibly having to reconsider rate hikes.’ This would also mean that the dovish optimistic and bullish assumptions supporting the Risk-On environment (i.e., ‘fully embracing risk assets’) would be undermined. According to Zhitong Finance APP,

The $1 trillion club’s new members are powering the AI boom: Chart of the Day

Market royalty is getting a hardware makeover. Samsung Electronics (005930.KS) just climbed past $1 trillion in market capitalization, making it the latest company tied to the AI build-out to enter the market’s most exclusive tier. It’s joining Nvidia (NVDA), TSMC (TSM), and Broadcom (AVGO) in a newer class of giants that make the chips, memory,

Wall Street weighs epic run in AI stocks

Semiconductor stocks leading the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) to record highs have one common thread: They sit at the bottlenecks of the artificial intelligence trade. It used to be that Nvidia (NVDA) graphics processing units (GPUs) — the primary engines of the AI boom — were hard to get. But advancements in

Hinge Health Q1 Earnings Call Highlights

Hinge Health logo Key Points Interested in Hinge Health Inc.? Here are five stocks we like better. Hinge Health beat Q1 expectations with revenue of $182 million, up 47% year over year, and raised its full-year 2026 guidance. The company also posted stronger profitability, including an 85% gross margin, $46 million in non-GAAP operating income,

HA Sustainable Infrastructure Capital Q1 Earnings Call Highlights

HA Sustainable Infrastructure Capital logo Key Points Interested in HA Sustainable Infrastructure Capital, Inc.? Here are five stocks we like better. HASI posted record first-quarter performance, with adjusted EPS of $0.77, adjusted ROE of 15.7% and adjusted recurring net investment income up 29% year over year to $101 million. Managed assets also rose 13% to

Why I sometimes tell myself average returns are a mirage 🤨

I got an early copy of Ben Carlson’s new book, “Risk & Reward.” It’s terrific. (And it goes on sale May 12!) Carlson, of Ritholtz Wealth Management, has a gift for being both entertaining and informative. His accessible writing makes for a casual read, and yet with each page you turn, you get a little

Stock Market Crash: The Best Dividend Stocks to Buy Right Now

So you’re worried about a stock market crash. You’re certainly not alone. Global disturbances alone might be enough to cause worry, but check out the last few years’ performance of the S&P 500: Year S&P 500 Return 2016 12% 2017 21.8% 2018 (4.4%) 2019 31.5% 2020 18.4% 2021 28.7% 2022 (18.11%) 2023 26.29% 2024 25.02%

2 Dividend Stocks That Are No-Brainer Buys in May

The S&P 500 index (SNPINDEX: ^GSPC) is trading near all-time highs despite the geopolitical conflict in the Middle East, high oil prices, and increasing concerns around a global recession. If you are like me, you probably watch all this with wonder, trying to understand why Wall Street is so positive given all of the negatives

0
Would love your thoughts, please comment.x
()
x