The Fed isn’t about to rescue your 401k

PatriotR Daily News 05/21/25

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US NEWS

​The Fed isn’t about to rescue your 401k

Federal Reserve Chair Jerome Powell said interest rate cuts are not on the table yet, despite stock markets tumbling after President Trump announced sweeping tariffs. Powell emphasized the Fed needs more time to assess the inflationary and economic impact of these import duties, which he described as “significantly larger than expected.” While the job market remains strong, recession fears are rising—JP Morgan now places the odds at 60%. President Trump pushed for immediate rate cuts and circulated a viral video claiming the market crash is part of a broader strategy to shift investments into bonds. Although investor speculation about a rate cut at the May Fed meeting has increased, Powell made it clear the Fed won’t act until there’s more clarity.

FINANCIAL NEWS

Moody’s Downgrade Sends 30-Year Treasury Yield Above 5%, Raising Alarm on U.S. Fiscal Path

The 30-year U.S. Treasury yield briefly surpassed 5%—a level not seen since 2023—after Moody’s downgraded the U.S. credit rating from Aaa to Aa1, citing rising debt levels and high interest costs. Although yields eased later in the day due to bond buying, the downgrade marked a symbolic shift as Moody’s was the last major agency to maintain a top-tier rating for the U.S. Analysts warn that proposed tax cuts and tariffs may worsen the country’s fiscal outlook. Moody’s expressed skepticism that any real deficit reduction will result from current government proposals, further fueling concerns about whether U.S. Treasurys remain a safe-haven investment. Read Now. 

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