The Federal Reserve concluded its widely anticipated May Federal Open Market Committee (FOMC) policy meeting on May 1. Financial markets were unsurprised to see that the US central bank left its benchmark rate unchanged at a 23-year high of 5.25% to 5.5%. But while the decision everyone waited for was the day’s main event, the FOMC statement and Chair Jerome Powell’s post-meeting press conference were the critical attractions for Wall Street, Main Street, and the White House.
Federal Reserve Shrugs Off Inflation
Stocks were little changed when the Fed issued its final decision. Markets even shrugged off the Eccles Building’s move to slow the pace of its balance sheet runoff campaign (more on that later). However, minutes into Powell’s press conference, equities soared higher than a SpaceX rocket. Why? There was one statement that traders were…
