#FOMCMeeting It seems that interest rates will be maintained in the US; however, there is a possibility that they might be reduced, but it seems it wouldn't be by much.
The Federal Reserve of the United States (Fed) will hold its Federal Open Market Committee (FOMC) meeting on May 6 and 7, 2025.
Below, I present the key points expected from this meeting:
- *Decision on interest rates*: The market is convinced that the Fed will keep interest rates at the current level, between 4.25% and 4.50%, with a probability of 97.3%. There is only a 3.4% chance that the Fed will cut rates to a range of 4% to 4.25%.
- *Economic stance*: It is expected that the Fed will maintain its current stance unchanged, and that Chairman Jerome Powell will reiterate that the Fed is assessing the total impact.
- *Guidance for future cuts*: Bank of America anticipates that Powell will not rule out a cut in June, but will rely on the market to adjust its expectations according to the data.
- *Market reaction*: Financial markets are paying close attention to Powell's press conference for clearer guidance on future monetary policy.
*Impact on markets*
- US stock markets have started the week with declines due to announcements of 100% levies on film productions made outside the US.
- Gold prices are rising
- Oil prices fell by more than 1%