#FOMCMeeting

The Federal Open Market Committee (FOMC) is convening on May 6–7, 2025, with widespread expectations that interest rates will remain steady at 4.25%–4.50% . This decision comes amid economic uncertainties fueled by President Trump’s recent tariff implementations, which have disrupted consumer and business sentiments and led to a 0.3% GDP contraction last quarter.

Despite these challenges, the labor market shows resilience, adding 177,000 jobs in April and maintaining a 4.2% unemployment rate . Fed Chair Jerome Powell is expected to uphold a cautious stance, emphasizing the need for more definitive economic indicators before considering rate adjustments.

Financial markets are closely monitoring the Fed’s guidance, with potential rate cuts anticipated in the latter half of the year, contingent on evolving economic conditions . Investors are advised to stay informed, as the Fed’s decisions will significantly influence market dynamics in the coming months.