FOMC Meeting Preview: Markets Brace for Fed's May Decision
The Federal Open Market Committee (FOMC) convenes on May 6–7, 2025, with a policy decision expected on Wednesday at 2 p.m. ET. Markets widely anticipate the Fed will maintain interest rates at the current range of 4.25%–4.50%, extending the pause initiated in January.
Despite political pressure from President Trump for rate cuts, Fed Chair Jerome Powell is expected to uphold the current stance, citing persistent inflationary pressures and economic uncertainties stemming from recent tariff policies.
Market expectations for a rate cut in June have diminished, with the CME FedWatch tool indicating a 33% probability, down from earlier projections.
Cryptocurrency markets have shown sensitivity to macroeconomic signals. Bitcoin (BTC) is trading at approximately $94,410, while Ethereum (ETH) stands at $1,805.56. Investors are closely monitoring the Fed's guidance, as dovish signals could bolster risk assets like cryptocurrencies.
The Fed's Summary of Economic Projections suggests two rate cuts in 2025, but recent economic data and geopolitical tensions may influence this outlook.
As the FOMC meeting unfolds, markets will keenly analyze Powell's remarks for insights into the Fed's policy trajectory.