Review: The Fed Keeps Rates Unchanged, and For Now Remains in “Wait and See and Watch” Mode

by Brunello Rosa and Nato Balavadze

In this paper we discuss:

• The Fed’s latest assessment of the US economy, which remains “solid” in all its components;
• The Fed’s decision to hold rates in May and could wait for longer before acting; 
• That the economy has performed broadly in line with March’s projections, even if from June the first impact of tariffs announcement will likely appear in forecasts; 
• The negative market reaction, given by expectations of a more dovish Fed. 

Download PDF: Fed Review May 2025

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