📊🇰🇷🇺🇸 Weekly Outlook: Korea & U.S. Economy and Markets (May 5–9, 2025)
📌 Key Issues of the Week
1. U.S. Fed May FOMC Meeting: Rate Hold Expected, Focus on Future Cuts
The Federal Open Market Committee (FOMC) meeting on May 6–7 is expected to maintain the current interest rate at 4.25–4.5%. However, with Q1 U.S. GDP unexpectedly contracting by -0.3%, and ongoing rate cut pressure from President Trump, markets are now pricing in possible rate cuts as early as June or July. (MarketWatch)
2. Fed Officials’ Speeches: Hints Toward Policy Direction
Following the FOMC, key Fed officials — Vice Chair Michael Barr, Governors Adriana Kugler, Christopher Waller, and Lisa Cook — are scheduled to speak, potentially offering further insight into the direction of monetary policy. (Investopedia)
3. U.S. Earnings Season Continues: Eyes on Disney
Major earnings releases continue this week, with Disney among the highlights. Investors will be watching closely for any signs of impact from Trump’s trade and tariff policies on corporate margins. (Investopedia)
4. South Korea to Release Key Economic Indicators
South Korea will announce its April Consumer Price Index (CPI), which will offer clues about the Bank of Korea’s future rate decisions. Additional data, including the Q1 international investment position, will also be released. (US News)
5. APEC 2025 SOM2 Kicks Off in Jeju
The second Senior Officials’ Meeting (SOM2) for APEC 2025 will be held in Jeju, South Korea, in May. Discussions are expected to focus on trade, human resources, and education collaboration across member economies. (Seoul City)
🗓️ Key Events This Week
- May 6–7: U.S. FOMC meeting
- May 8: U.S. trade balance release, Disney earnings
- May 9: Scheduled speeches by multiple Fed officials
- Throughout May: South Korea CPI release, APEC SOM2 in Jeju
🔍 Market Outlook & Investment Strategy
- U.S. Markets: Market sentiment is optimistic as investors expect the Fed to signal rate cuts in the coming months. Tech stocks may continue their upward trend, supported by stable earnings and easing inflation fears.
- Korean Markets: Investors are focusing on inflation data and external trade developments. APEC SOM2 may boost investor sentiment, especially in sectors tied to international cooperation and infrastructure.
✅ Conclusion & Final Thoughts
This week is packed with crucial events, including the Fed's rate decision, major earnings reports, and key macroeconomic indicators. As market volatility may rise, investors should stay alert to policy signals from the Fed and South Korean central authorities, and maintain a cautious but opportunistic investment strategy.