The Federal Reserve kept its benchmark interest rate in the 3.50%–3.75% range

International

Yesterday afternoon, the Fed announced its decision to keep the federal funds rate unchanged at 3.50%–3.75%. Among the highlights of the statement, the description of inflation was changed to “high” (vs. “somewhat elevated” previously), and three of the voters noted that they did not agree with the statement that the future path of interest rates will be downward. At the press conference, Jerome Powell mentioned that he will remain as a member of the Board of Governors after May 15, when he steps down as Chair and Kevin Warsh takes his place. He also noted that inflation is elevated and that most governors are shifting toward a more neutral stance, while the economy remains solid.

Against this backdrop, the U.S. Treasury yield curve widened once again. The 1-year Treasury note rose from 3.69% to 3.74%, while the 3-year Treasury note rose from 3.86% to 3.97%. At the longer end, the yield on the 10-year bond widened from 4.35% to 4.43%.

Meanwhile, the major U.S. stock indices showed little change. The S&P 500 and the Nasdaq closed flat yesterday, while the Dow Jones fell 0.6%. Thus, year-to-date, the indices have gained 4.2%, 6.2%, and 1.7%, respectively.

Finally, after the market closed yesterday, Alphabet, Microsoft, Amazon, and Meta reported their first-quarter 2026 results. Alphabet led the way with revenue of $109.9 billion and earnings per share (EPS) of $5.11 (compared to the expected $106.8 billion and $2.62), followed by Amazon, which reported revenue of $181.5 billion and EPS of $2.78 (exceeding the estimated $177.13 billion and $1.63). For its part, Microsoft reported revenue of $82.9 billion and EPS of $4.27 (vs. projected $81.29 billion and $4.05), while Meta Platforms reported revenue of $56.31 billion and an impressive EPS of $10.44, beating the consensus of $55.52 billion and $6.65. Today, Apple, Eli Lilly, Mastercard, and Caterpillar, among other companies, will report.

Fuente: PUENTE