#FOMCMeeting The Federal Open Market Committee (FOMC) began its two-day policy meeting today, May 6, 2025, with the interest rate decision and press conference scheduled for tomorrow, May 7. Markets widely anticipate that the Federal Reserve will maintain the federal funds rate at its current range of 4.25%–4.50%, reflecting a cautious approach amid ongoing economic uncertainties.

Key Expectations and Market Sentiment

Interest Rates: The CME FedWatch Tool indicates a 96% probability that the Fed will keep rates unchanged. Fed Chair Jerome Powell is expected to reiterate a data-dependent stance, emphasizing the need for more economic clarity before considering any rate adjustments.

Economic Indicators: Despite a 0.3% decline in GDP last quarter, consumer spending and job growth remain relatively strong, with 177,000 jobs added in April. However, recent tariff policies have introduced additional uncertainties, potentially impacting future economic performance.

Market Reactions: Ahead of the meeting, gold prices have risen to a two-week high, driven by safe-haven demand amid tariff concerns and anticipation of the Fed's policy decision. Cryptocurrency markets have experienced slight declines, with Bitcoin down 0.3% to $94,620, as investors await the Fed's guidance.