Investors focus on economic growth, not interest rates

Federal Reserve meetings are no longer the main focus for investors. For years, these meetings were crucial for Wall Street as the Fed worked to manage rising inflation. Traders would carefully analyze interest rate statements and comments from Chair Jerome Powell. However, the current focus has shifted to concerns over slowing economic growth and trade issues due to tariffs. Now, investors are more interested in Powell's view on the economy than potential interest rate changes. Recent data shows that inflation is cooling, but news about tariffs is having a bigger impact. Many stocks that usually thrive during difficult economic times have risen, while the S&P 500 index has dropped significantly. As the Fed starts its latest two-day meeting, traders expect more volatility in the stock market. They are paying close attention to the upcoming tariff deadlines and how they may affect trade. Uncertainty surrounding tariffs is making investors anxious, as news can rapidly change market conditions. Economic indicators are showing signs of weakness. Small business confidence is down, consumer sentiment is low, and factory activity is slowing. As a result, many investors are feeling pessimistic. Confidence in the market is declining, and concerns are growing that the government's support for economic growth may not be effective. Despite the challenging outlook, some investors see chances to profit, especially in sectors like health care and industrials. However, many market strategists are lowering their expectations for stock performance, citing worries about the impact of tariffs on economic growth. Overall, uncertainty due to trade policies is now a key concern for the market.