China Holds Loan Prime Rates Steady in January as Market Expectations Align 
Bank of Japan Likely to Delay Rate Hike Until July as Economists Eye 1% by September 
ECB’s Cipollone Backs Digital Euro as Europe Pushes for Payment System Independence 
MAS Holds Monetary Policy Steady as Strong Growth Raises Inflation Risks 
ECB Signals Steady Interest Rates as Fed Risks Loom Over Outlook 
Markets React as Tensions Rise Between White House and Federal Reserve Over Interest Rate Pressure 
Thailand Economy Faces Competitiveness Challenges as Strong Baht and U.S. Tariffs Pressure Exports 
BOJ Rate Decision in Focus as Yen Weakness and Inflation Shape Market Outlook 
U.S. Urges Japan on Monetary Policy as Yen Volatility Raises Market Concerns 
Bank of England Expected to Hold Interest Rates at 3.75% as Inflation Remains Elevated 
U.S. Prosecutors Investigate Fed Chair Jerome Powell Over Headquarters Renovation 
RBA Deputy Governor Says November Inflation Slowdown Helpful but Still Above Target 
Citing the growing risk of greater inflation and increasing unemployment, the May 2025 FOMC minutes revealed the Federal Reserve's worries about the U.S. economic outlook. Fed officials acknowledged the possibility of "difficult trade-offs" due to persistent inflation and a potential economic downturn. Projections by the staff indicated reduced GDP expansion for 2025 and 2026 as well as a predicted "significant" decline in the labor market.
Chairman Jerome Powell emphasized the challenge in gauging the full impact of these tariffs on inflation expectations. Trade policies—particularly tariffs—were found to be major contributors to inflationary pressures and slower growth, as well as to affect economic activity. In light of the growing ambiguity, the Committee approved a prudent, wait-and-see approach to financial policy.
The FOMC's decision to keep the federal funds rate between 4.25% and 4.50% mirrored their conservative posture amid these economic difficulties. The minutes noted no immediate plans for interest rate cuts and accepted that policy uncertainty made achieving the dual goals of full employment and low inflation challenging. Market reaction to the minutes was subdued as they mostly confirmed the Fed's current hawkish stance and fears about trade-related inflation risk.
