Live updates: Fed set to hold rates steady again despite Trump’s demands

Stocks opened modestly higher on Wednesday as investors digested the latest data on economic growth and awaited the Federal Reserve’s decision on interest rates.

The Dow opened higher by 26 points. The broader S&P 500 gained 0.1%, and the tech-heavy Nasdaq Composite rose 0.2%.

Wall Street this afternoon will be fixated on Fed Chair Jerome Powell’s press conference at 2:30 p.m. ET. to try and glean insights about how the central bank is interpreting the impact of tariffs on the health of the economy.

“My expectation is more of the same. And when I say more of the same, that’s a reflection on what Powell has been driving home, that they want to have this degree of patience,” Tom Porcelli, chief US economist at PGIM Fixed Income, said.

“The labor market has been softer than I think some folks appreciate,” Porcelli said. “Maybe there’s some tacit acknowledgement that things are a little softer beneath the surface.”

Mohit Kumar, chief strategist and economist for Europe at Jefferies, said in a note that he expects Powell to highlight the uncertainty in projecting inflation and economic growth due to lingering tariffs.

“The Fed will need to wait for more data before it could act,” Kumar said. “Our view remains that we could see some weakness in the employment data in the coming months which should drive the [Fed] to deliver the next rate cut in September and a total of two rate cuts this year.”