#FOMCMeeting The Federal Open Market Committee (FOMC) of the U.S. Federal Reserve is meeting today and tomorrow (May 6 and 7, 2025) to make a decision on interest rates. Predictions indicate that the central bank will keep the interest rate unchanged, within the current range of 4.25% to 4.50%, amid ongoing anticipation regarding the impact of new tariffs on the U.S. economy.
Key Updates:
1- High likelihood of maintaining rates: The "CME FedWatch" tool indicates that the probability of a rate cut at this meeting does not exceed 1.8%, reinforcing expectations of maintaining rates.
2- Political pressure without response: Despite President Trump's repeated calls to lower rates to support economic growth, the Federal Reserve remains cautious, pointing to inflation risks arising from new tariffs.
3- Market watch: Markets, including cryptocurrencies and gold, are reacting cautiously to the expected decision. Bitcoin and Ethereum prices have dropped, while gold has risen by more than 2%, supported by a weaker dollar and increased demand for safe havens.
Finally, some analysts expect the Federal Reserve to begin cutting rates starting in July, especially if the effects of the tariffs start to negatively impact inflation and the labor market. However, so far, there are no strong indicators of sufficient economic weakness to justify an immediate rate cut.