Federal Reserve's Crucial Role Amidst Stock Market Rebound

The upcoming Federal Reserve meeting is pivotal for the U.S. stock market's rally, as investors anticipate possible interest rate cuts. Trump's tariffs and their impact on inflation, market volatility, and Fed independence are key concerns amidst economic data showing varied signals.

The U.S. stock market's sharp rebound is set to face a critical juncture as the Federal Reserve's meeting approaches, with investors keenly watching for signs of potential interest rate cuts in the coming months.

While the Fed is expected to maintain steady borrowing costs during Wednesday's monetary policy statement, there is anticipation of possible rate reductions, particularly after a robust U.S. jobs report. This setting comes as President Trump's tariffs have fueled market volatility, affecting policy decisions.

Despite economic contractions and pressures on Fed independence, with Trump previously threatening Fed Chair Jerome Powell's position, key financial performance indicators remain surprisingly strong. Investors remain hopeful for international trade developments and are closely monitoring corporate earnings results.

(With inputs from agencies.)