Fed Maintains Low Rates; Tech CEOs Face Congressional Scrutiny

Fed Maintains Low Rates; Tech CEOs Face Congressional Scrutiny

The Federal Reserve has reaffirmed its stance on keeping interest rates near zero, with Chairman Jerome Powell emphasizing the ongoing commitment to economic stimulus. During the most recent Fed meeting, Powell stated, “We are not thinking about thinking about raising rates,” and further reiterated, “We are not thinking about thinking about THINKING ABOUT raising rates.” The rates remain between 0% and 0.25%, with the Fed pledging to continue its support through bond-buying programs, low-interest rates, and dollar swaps. Powell also highlighted the strength of banks, which have proven resilient during the crisis.

While Powell addressed the state of the economy, tech CEOs were in the spotlight on Capitol Hill, facing tough questioning on antitrust concerns. CEOs from Amazon, Google, Facebook, and Apple appeared before Congress, with Amazon’s Jeff Bezos facing the most intense scrutiny regarding anti-competitive practices. Despite being rattled by tough questions, Bezos’ performance in the hearing contrasted with his peers. Mark Zuckerberg of Facebook defended the company’s acquisitions, including Instagram, while Sundar Pichai of Google redirected questions regarding Google’s dominance in search and services. Apple’s Tim Cook, however, endured fewer challenges, with Congress struggling to prove unfair practices in the App Store.

With both the Fed’s actions and ongoing hearings shaping the economic landscape, market volatility is expected to continue—traders are advised to proceed cautiously.