Fed Holds Rates, Signals Uncertainty

FINANCE
Fed Holds Rates, Signals Uncertainty

Federal Reserve Chair Jerome Powell emphasized “uncertainty” in the central bank’s economic outlook, using the term at least 10 times. The Fed kept interest rates steady but maintained its forecast for two cuts this year. While growth projections were slightly lowered and inflation expectations raised, markets reacted positively, with the S&P 500 and Nasdaq rising 1.1% and 1.4%, respectively.

Powell reassured investors the Fed would take a cautious, data-driven approach, particularly amid uncertainty surrounding President Trump’s economic policies. Stocks had recently fallen over 10% due to tariff threats and recession fears.

The Fed also announced a slower pace of quantitative tightening, which some saw as a dovish signal. Meanwhile, officials trimmed GDP growth forecasts to 1.7% and raised inflation expectations to 2.7%, above the 2% target. Investors remain divided on the Fed’s strategy, with some warning of economic stagnation while others see the cautious stance as necessary given ongoing volatility.

TECH
Musk’s Starlink Expands Into India

Elon Musk has secured a major win in India, with SpaceX striking deals with telecom giants Reliance Jio and Airtel to roll out Starlink internet services across the country. This move comes after Musk’s meeting with Prime Minister Narendra Modi, where he emphasized expanding internet access in the world’s most populous nation.

Starlink’s entry into India signals a breakthrough for U.S. firms, which have long struggled with regulatory barriers and local competition. The service could provide crucial connectivity to rural areas, where traditional networks have limited reach. However, challenges remain, including regulatory approvals, competition from European satellite providers, and the need for affordable pricing in a cost-sensitive market.

Musk’s close ties to President Trump may have influenced India’s decision, but the success of Starlink will depend on its Indian partners, Mukesh Ambani and Sunil Mittal. If successful, this venture could redefine India’s internet landscape and further strengthen U.S.-India tech relations.

FINANCE
Dimon Warns of Economic Uncertainty

JPMorgan Chase CEO Jamie Dimon warned of economic turbulence despite the current “soft landing” phase. Speaking at Adobe’s annual summit, he cited uncertainties around tariffs, Trump’s proposed tax plan, and geopolitical tensions, particularly in Ukraine, Russia, and the Middle East, as key risks to the global economy.

Dimon noted shifts in consumer spending, with lower-income individuals cutting back on expenses while wealthier households remain financially secure due to long-term asset growth. He also highlighted economic inequality, emphasizing that the bottom 20% of earners in the U.S. have seen stagnant wages for decades and face worsening living conditions.

On inflation, Dimon acknowledged persistent pressures from green energy investments, trade restructuring, and rising military spending. While he hopes inflation will ease, he urged business leaders to plan for all possible outcomes. Looking ahead, he stressed the importance of preparing for future economic realities rather than reacting to short-term fluctuations.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.