Market experts are anticipating that the Federal Reserve will likely keep interest rates at their current levels during its upcoming meeting in May. Recent data suggests a high probability of no rate cuts, with surveys indicating a 90% chance for stability. While some financial institutions like Bank of America predict multiple rate reductions throughout the year, market sentiment leans towards a preference for maintaining current policy. Economists are closely observing economic indicators such as new orders declining and prices rising, suggesting that a rate cut might not be warranted. The upcoming U.S. GDP and PCE inflation reports will also play a crucial role in shaping Fed decisions. Fed Chair Jerome Powell has emphasized the need to consider potential inflationary pressures before considering any changes in interest rates. Former President Donald Trump, on the other hand, urges for a rate cut, arguing it is necessary to avoid an inevitable economic slowdown. Traders and analysts are closely watching economic data scheduled for release on April 30th, as it may influence the Fed’s decision-making process in May. Even though interest rate adjustments could encourage capital flows into riskier assets, substantial reductions might not occur until at least June. Political pressures complicate the Fed’s ability to act without risking its perceived independence.