The Federal Reserve maintained its benchmark interest rate at the 3.5%-3.75% range, a decision widely anticipated by the market. However, the true focus for investors was on any perceived political influence over the central bank’s independent operations.
Fed Chair Jerome Powell addressed his attendance at a legal proceeding concerning Fed Governor Lisa Cook, a case that could determine whether President Donald Trump has the authority to remove her from office. Powell described the case as potentially “the most important legal case in the Fed’s 113-year history” and found it difficult to justify his absence. He also offered a pointed piece of advice to his successor: “Don’t get pulled into elected politics. Don’t do it.”
This emphasis on navigating political currents comes as U.K. Prime Minister Keir Starmer embarks on a significant visit to China, the first by a British leader in eight years. The trip signals an effort to recalibrate relations with the world’s second-largest economy, and early indications suggest a potential thaw, with Chinese state media reporting an agreement to deepen cooperation in key sectors.
Corporate earnings also captured significant market attention. Meta Platforms, Microsoft, and Tesla all released their latest financial results after the closing bell. While all three companies surpassed earnings per share and revenue expectations, investor reactions were varied. Meta and Tesla shares saw gains, whereas Microsoft’s stock experienced a decline.
On Wednesday, the S&P 500 briefly touched the 7,000 mark before settling below it. The U.S. dollar strengthened following Treasury Secretary’s denial of reports suggesting U.S. intervention in currency markets.
In Europe, Deutsche Bank reported record profits for the fourth quarter of 2025. Meanwhile, Swiss pharmaceutical giant Roche projected “high single-digit” growth for its core earnings per share in 2026.
Gold prices surged past $5,500, reaching another all-time high, though one analyst characterized the precious metals market as “broken.” With Apple slated to release its earnings next, investors continue to have a full slate of developments to monitor.
Original article, Author: Tobias. If you wish to reprint this article, please indicate the source:https://aicnbc.com/16802.html
