#btc
Interest Rate:
The Federal Reserve (the central bank of the United States) is expected to keep the interest rate unchanged at its upcoming meeting on Wednesday, May 7, 2025. Currently, the interest rate ranges between 4.25% and 4.5%, and it is unlikely to be reduced at this meeting, as market expectations indicate only a 1.8% chance of a cut at this time.
Despite increasing political pressures, including calls from President Donald Trump to lower the rate, the Federal Reserve continues to adopt a "wait and see" approach. This is attributed to inflation remaining above the bank's target of 2%, as it reached 2.6% in March, along with the unemployment rate stabilizing at 4.2%.
However, there are signs that a rate cut may be possible later this year. The President of the Federal Reserve Bank of Cleveland, Beth Hammack, indicated that the bank may start to lower the rate in June if clear signs of an economic slowdown emerge as a result of the new tariffs.
At the moment, the interest rate is expected to remain steady at the May meeting, with close monitoring of developments in the U.S. economy over the coming months.
What do you think?
