Wall Street Awaits Fed's Monetary Pause: What's Next?

Wall Street anticipates the Federal Reserve's pause in monetary easing to persist until Chair Jerome Powell's term ends in May. Investors are betting on further rate cuts later in the year. The Fed recently held interest rates steady, with a next possible rate reduction expected under Powell's successor.

Wall Street is closely watching the Federal Reserve as it appears set to maintain its pause in monetary easing, a stance expected to last through the remainder of Chair Jerome Powell's term, concluding in May. Investors are predicting further rate cuts later in the year to aid bullish market positioning.

At the conclusion of its two-day policy meeting, the Fed decided to keep interest rates unchanged, pausing its easing cycle which has buoyed U.S. equities. Futures markets have priced in a potential rate cut for the June meeting, posturing under a new Fed chair, with President Trump anticipated to announce his pick soon.

Despite market hopes for further interest rate reductions, economic indicators such as inflation and employment stability could play deciding roles in future Fed decisions. The market reaction was subdued following the recent Fed meeting, as economic experts predict the central bank's next moves.

(With inputs from agencies.)