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Stocks close slightly higher as Fed stands pat on rates, warns of stagflation risks


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  The Federal Open Market Committee said it "judges that the risks of higher unemployment and higher inflation have risen."

On May 7, 2025, U.S. stocks closed slightly higher following the Federal Reserve's decision to maintain current interest rates while warning of potential stagflation risks. The Fed's cautious stance was influenced by recent economic data showing persistent inflation and slower growth, raising concerns about stagflation—a scenario of stagnant economic growth combined with high inflation. The S&P 500 rose by 0.3%, the Dow Jones Industrial Average gained 0.2%, and the Nasdaq Composite increased by 0.4%. Investors reacted positively to the Fed's acknowledgment of these risks, though uncertainty about future economic conditions persists.

Read the Full Fortune Article at:
[ https://fortune.com/2025/05/07/stocks-close-slightly-higher-as-fed-stands-pat-on-rates-warns-of-stagflation-risks/ ]

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