Analysts have mixed reactions to the Federal Reserve's decision to maintain interest rates and its revised economic and inflation forecasts. Bob Michele from J.P. Morgan Asset Management sees the Fed's move as dovish, while KPMG's Diane Swonk and Deutsche Bank's Matthew Luzzetti interpret it as more hawkish. Swonk suggests a rate cut in May is unlikely, with reductions not expected until early 2026. Luzzetti notes the Fed's message is one of caution, and Michele feels the market is relieved by the Fed's patience.
European Central Bank Vice President Luis de Guindos emphasizes global uncertainty, stating that no predetermined path for interest rates can be committed to. He stresses that the current environment requires a flexible approach to monetary policy, with decisions being data-driven.
Bank of America CEO Brian Moynihan reports strong consumer spending in the U.S. and mentions the banking sector's readiness for regulatory changes. He highlights the challenges of complying with current regulations, which often involve reputational risks identified only in hindsight.
NVIDIA (NVDA, Financial) CEO Jensen Huang addresses misconceptions about the DeepSeek AI model, asserting that it requires more computational power, not less. Speaking at the GTC conference, Huang clarifies that the demand for advanced computing infrastructure will only grow with these new AI models.
UBS CEO Sergio Ermotti notes that economic policy uncertainty has led to a stagnation in investment banking services, including mergers and acquisitions and capital raising, during the current quarter.
