At 02:00 am on Thursday, Beijing time, as expected by the outside world, the Federal Reserve announced for the third consecutive time that it would maintain interest rates between 4.25% and 4.5% unchanged for the third time after the two-day interest rate meeting.

On May 8, global media headlines focused on the first Federal Reserve interest rate decision after peer tariffs.

The Federal Reserve's May meeting was "stand still" and the subjective willingness to cut interest rates in June was not strong. Federal Reserve Chairman Powell said "wait and see" 11 times in a press conference. Watching things happen - is the policy he has always conveyed.

The Trump administration's trade policy has brought great uncertainty to the economy. Economists generally believe that these measures will push up inflation and suppress economic growth, thus putting the Fed in a dilemma between maintaining "price stability" and achieving "full employment."

The Federal Reserve's monetary policy statement released by the Federal Reserve added a new sentence: The risks of rising unemployment and rising inflation have increased, which means the Federal Reserve is well aware of the current dilemma, and the cost of "waiting and watching" is much higher than taking rash actions.

Trump has repeatedly stated that the Fed should cut interest rates as soon as possible and threaten to fire Powell. But in the face of the huge shock in the market, Trump seemed to have begun to soften his "position" and repeatedly denied the firing remarks.

Powell's stance is still tough. When asked about Trump's demand for a rate cut, Powell said that this pressure "really doesn't affect our work or what we're going to do." He also said he never offered to meet with any president and would not.

Summary of key points of press conference

1 Interest rate outlook

The current uncertainty requires the Fed to continue waiting, and all committee members support waiting; Trump's request for a rate cut will not affect our work at all; the cost of waiting is very low, and the Fed does not need to rush to adjust interest rates; in some cases it is appropriate to cut interest rates this year, in some cases it is inappropriate to lower interest rates, and in some cases it is not appropriate to say confidently that I know the right interest rate path; when things develop, the Fed can act quickly as appropriate.

2 Inflation prospects

Short-term inflation expectations have risen, and long-term inflation expectations are consistent with the target; avoiding sustained inflation will depend on the scale, timing and inflation expectations of the tariffs. If the tariffs are significantly increased as announced, higher inflation will occur.

3 Employment prospects

Wage growth has continued to slow down, and the labor market has reached or approached the maximum employment level; if there is a contradiction between the dual goals, consider the distance with the goals and the time to bridge the gap.

4 Economic prospects

There are no signs of economic slowdown in the actual economic data, and the economy is in a stable state; the uncertainty is very high, and the downward risks of the economy have increased; fluctuations in GDP data will not really change the situation of the Federal Reserve.

5 Tariff impact

Tariffs have so far been much larger than expected; no significant economic impact has been seen from tariff data yet, and the inflationary effect of policies may be short-lived; the government is beginning trade negotiations, which has the potential to substantially change the situation; survey respondents pointed out that tariffs are the main factor driving inflation expectations.

Other global financial news that need attention-

CNBC : EU will announce next steps to counter US tariffs on Thursday

EU Trade Commissioner Malos Sevkovic said on Wednesday that EU implementing agencies will release more details of proposed countermeasures against U.S. tariffs in their latest statement on Thursday.

Sevkovic said that if the current trade negotiations fail, the EU will continue to "prepare for any situation". "Negotiation is obviously the first choice, but not at all costs," he told reporters, adding that the EU's "highly focused policy" is still seeking a negotiated solution with Washington.

Bloomberg: Trump administration plans to lift AI chip restrictions in the Biden era

The Trump administration plans to lift Biden-era AI chip restrictions as part of a broader effort to revise semiconductor trade restrictions that have drawn strong opposition from major tech companies and foreign governments. The policy divides the country into three categories to regulate chip exports from companies such as NVDA (NVDA.O).

People familiar with the matter revealed that the Trump administration will not enforce the so-called artificial intelligence proliferation rule when it comes into effect on May 15, but the abolition decision has not been finalized. During the period when new rules are formulated, the U.S. Department of Commerce will continue to strictly enforce chip export restrictions.

Reuters: The United States considers exempting tariffs on China's imported car seats and strollers

U.S. Treasury Secretary Bescent Besent said the Trump administration is considering exempting up to 145% tariffs on car seats, strollers, cribs and other children's travel essentials imported from China.

U.S. President Trump said he will consider tariff exemption requests made by specific industries.

Financial Times: Apple considers adding AI search to browsers, Google drops 7%

Apple is actively looking at improving the Safari browser, hoping that the latter will turn to a search engine powered by artificial intelligence (AI). This means that Apple's long-term partnership with search engine giant Google may end.

Affected by this news, Google's stock price closed down more than 7% on Wednesday, and Apple also fell more than 1%.

Wall Street Journal: Ford raises prices for Mexico-made models on tariffs

Ford has increased the price of three models since May 2, becoming one of the first major automakers to adjust their price tags after U.S. President Donald Trump implemented tariffs. Prices for some models of the Ford Mustang Mach-E electric SUV, Maverick pickup and Bronco Sport will be increased by up to $2,000.

Earlier this week, Ford said the trade war initiated by U.S. President Donald Trump would add about $2.5 billion to the company's costs in 2025, but Ford is expected to cut about $1 billion in related spending.

Fox Business: Disney shares rise 10% as theme parks and streaming businesses boost outlook

Disney's second-quarter revenue exceeded Wall Street analyst expectations and raised its full-year performance outlook thanks to strong performance in theme parks and streaming TV businesses. Disney's stock price rose 12% after opening the New York market.

Disney said in a statement Wednesday that full-year earnings for fiscal 2025, excluding certain items are expected to grow 16% to $5.75 per share, about double the previous expected increase. Disney closed up more than 10%.

Nikkei News: Alibaba's "Tongyi Qianwen" becomes the foundation of Japan's AI development

Alibaba Cloud, a subsidiary of Alibaba Group, has an artificial intelligence (AI) model "Qwen" in Japan. As an open source model for opening technology to the outside world, Tongyi Qianwen is being used by emerging Japanese companies including AI development company ABEJA.

In the "AI Model Score" list released by Nikkei Shimbun in April, Tongyi Qianwen's model surpassed China's DeepSeek model and ranked 6th.

Associated Press: U.S. Republicans give up cutting some Medicaid

U.S. House Republicans appear to have abandoned measures to cut parts of Medicaid as part of their massive tax cuts as they encounter resistance from more centrist Republican lawmakers.

Earlier, a new report released Wednesday by the nonpartisan Congressional Budget Office estimated that millions of Americans would lose Medicaid protections based on various cost-saving proposals proposed by Republicans. House Republicans are working to cut federal government spending on health care, food stamps and other programs, up to $1.5 trillion to cover the loss of revenue caused by about $4.5 trillion in tax cuts. (International Financial News)