#FOMCMeeting The Federal Open Market Committee (FOMC) is holding its two-day policy meeting today and tomorrow, May 6-7, 2025. Markets widely expect the Fed to maintain its benchmark interest rate in the current range of 4.25% to 4.50%, a level held since December 2024.

Key events before the meeting

Economic forecast: Recent data presents a mixed picture. While GDP contracted by 0.3% last quarter, the labor market remains resilient, with 177,000 new jobs added in April. However, new tariffs imposed by President Trump have disrupted business sentiment and industrial activity, raising concerns about potential stagflation.

Inflation and employment: The Fed faces a policy dilemma as tariffs can simultaneously raise prices and suppress employment, posing a challenge to its dual mandate of price stability and maximum employment.