FED SHOCKS Wall Street: Trump’S Trade Fight Sparks Market Jitters
— The Federal Reserve decided to keep interest rates the same on May 8, 2025. Officials said they are worried about the uncertainty caused by President Trump’s tough trade policies and tariffs. They want to see how inflation and the economy respond before making any changes.
Goldman Sachs warned that U.S. stocks could fall if tariffs stay in place or get worse. The recent rise in the S&P 500 might not last unless there is a clear move away from tariffs without hurting the economy.
In April, a short-term break from new tariffs gave markets a small boost, but investors are still uneasy about what comes next. The Fed says it will keep watching economic data closely as it deals with these challenges.
Right now, many on Wall Street want clearer answers from the White House about future trade moves. Until then, the Fed is focused on keeping prices steady and protecting American jobs as Trump sticks to his America First plan.
