Fed expectedly keeps rates steady — the intrigue was elsewhere

In a widely anticipated move, the U.S. Federal Reserve maintained its key interest rate, keeping it within the range of 3.5% to 3.75%. While this decision was expected, the focal point for investors was the potential political influence affecting the independent central bank. During the meeting, Fed Chair Jerome Powell highlighted improvements in the U.S. economy and labor market since the last gathering. However, attention also shifted to the ongoing legal troubles of Fed Governor Lisa Cook, who faces allegations of mortgage fraud—a claim she vehemently denies. The outcome of this case could determine whether President Donald Trump has the authority to dismiss her. "That case is perhaps the most significant legal matter in the Fed's 113-year history," Powell remarked at the press conference, reflecting on the implications. Powell also offered a piece of advice to his successor, urging them to avoid entanglement in political affairs: "Don't get pulled into elected politics. Don't do it." Tech giants dominated the headlines as well, with Meta, Microsoft, and Tesla announcing their earnings after the market closed. All three companies surpassed expectations for both earnings per share and revenue. Notably, Meta's stock surged by as much as 10% in after-hours trading due to a positive outlook for first-quarter revenue, while Tesla's shares gained approximately 1% despite reporting its first annual revenue decline in 2025. Conversely, Microsoft experienced a drop of over 6% due to concerns about slowing growth in its cloud services. Asian semiconductor manufacturers also reported impressive results, with SK Hynix achieving a record profit for 2025 and Samsung Electronics announcing its highest quarterly earnings ever. In market movements, the S&P 500 index briefly crossed the 7,000 level for the first time but closed just below that mark. The U.S. dollar strengthened following Treasury Secretary assurances that the government was not intervening in the currency market. Meanwhile, gold prices surged to a new record, surpassing $5,500. With Apple set to announce its earnings next, investors remain on high alert for further developments.