The Fed, major impact incoming!

In the new week, the focus of market trading will shift to the Federal Reserve's May interest rate meeting. On May 7th, the Federal Reserve will announce its latest interest rate decision. The current market consensus is that the Federal Reserve will hold rates steady. According to the CME Group's FedWatch tool, the probability of the Fed maintaining interest rates in May is as high as 97.2%. Therefore, the biggest highlight of next week's Fed rate decision may be Federal Reserve Chairman Powell's press conference. Some analysts have warned that Powell may adopt a "hawkish" tone to refute claims that the Fed is influenced by the White House, which could escalate the conflict between President Trump and Powell once again. In addition, the uncertainty of US tariff policy will continue to be a focus for investors, as the recent rebound in the US stock market is mainly due to signs of easing tensions. Bank of America's Chief Investment Officer Hartnett pointed out in a recent research report that investors expect Trump to shift to a "three lows" policy in his second hundred days, namely lowering interest rates, reducing tariffs, and lowering taxes.