#FOMCMeeting FOMCMeeting 🍒🍒🍒

The Federal Open Market Committee (FOMC) will indeed hold a two-day policy meeting on May 6-7, 2025. Here’s what we know so far ¹ ² ³:

- *Interest Rate Decision*: The broad market expects the Fed to keep the benchmark interest rate at 4.25%-4.50%, consistent with these expectations.

- *Previous Meeting*: At the most recent meeting on March 19-20, 2024, the FOMC decided to keep the interest rate at its highest level in 23 years at 5.25%-5.50% and signaled three rate cuts in 2024.

- *Economic Forecasts*: The Fed's economic forecasts, including the "dot plot", are likely to provide insight into future policy decisions.

- *Inflation and Growth*: The Fed's outlook on inflation and growth will be closely monitored, given the current economic situation.

Some key points drawn from previous FOMC meetings include ²:

- *Rate Cuts*: The Fed is expected to cut interest rates by 0.75 percentage points in 2024, with some policymakers debating the timing and magnitude of the cuts.

- *Inflation*: The Fed's inflation forecast remains a key factor in determining policy decisions, with a target inflation rate of 2%.

- *Economic Growth*: The Fed's growth forecasts have been revised upward, reflecting a sustainable economy.

We will have to wait for the outcome of the meeting to understand the Fed's current stance on monetary policy.