The Federal Reserve's upcoming Federal Open Market Committee (FOMC) meeting on May 7, 2025, is drawing close attention from cryptocurrency investors. With interest rate decisions and Powell's speech on the agenda, the market is tense.
After significant rate hikes in 2022-2023, the Federal Reserve has been in a prolonged state of stagnation and began to lower rates at the end of 2024, bringing the current rate down to 4.25%-4.50%. Currently, the likelihood of the Federal Reserve keeping interest rates unchanged is as high as 94%, and investors are closely monitoring the situation.
Despite strong employment data, the inflation rate remains slightly elevated, casting a shadow over the timeline for future rate cuts. Experts indicate that further rate cuts may occur later in 2025, but there is currently no clear roadmap.