Rate hike Wednesday

Is it possible to cool the labor market without spiking unemployment? Powell says yes—but it would be "against history". 

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Rate Hike Wednesday.
Welcome to the Know the Difference Minute for Wednesday, May 3rd.
Quarter point. No surprise. 10th time since March 2022. Fed funds rate at 5 to 5.25% for overnight bank lending but also consumer debt products like mortgages, auto loans and credit cards.
The announcement is one thing. Chairman Jerome Powell’s press conference is another.
A few things we picked up:
• No decision yet on a ‘pause’. In fact, hikes are still possible depending on data. And as far as cuts, Powell said if forecasts are right, it will take some time before cuts are in the picture.
• Is it possible to cool the labor market without spiking unemployment? Powell says yes—but it would be QUOTE against history.
• The Fed feels a soft landing is not off the table—and the case of avoiding a recession is more likely than having one.
I’m Dave Spano from Annex Wealth Management. That is your Know the Difference Minute.