Gate Ventures

May FOMC meeting: benchmark interest rate unchanged, monthly cap on asset reduction maintained, the Fed acknowledged partially entering a policy dilemma. On May 7, the Federal Reserve held its benchmark interest rate unchanged at a target range of 4.25%–4.50%, with the Interest on Reserve Balances (IORB) rate set at 4.40%. The pace of balance sheet reduction also remains unchanged, with the monthly cap on asset roll-offs maintained at $40 billion — comprising $5bn in US Treasuries and $

US real GDP decreased for 0.3% in the first quarter of 2025 according to advance reading as panic purchases ahead of tariffs fueled imports. The advance reading of US real GDP, published by the Bureau of Economic Analysis last Wednesday showed that it contracted at an annual rate of 0.3%. This is the first reversal after nearly 3 years of solid economic growth. Tariff-related uncertainty accelerated foreign imports and spending, and raised fears of a potential recession. The economic slowdown p

How will interest rate cut play out facing the current tariff war? An unsuccessful tariff negotiation may lead to bigger and sooner rate cuts. The current tariff negotiation faces two scenarios. The first scenario is that negotiations lack substantial progress, and tariffs remain high after 90 days. The Trump administration would maintain a 10% baseline tariff on major trade partners, a 25% tariff on imported automobiles and auto parts, as well as tariffs against China, resulting in an effectiv