#FOMCMeeting The Federal Open Market Committee (FOMC) is currently holding its May 2025 meeting, which spans two days: Tuesday, May 6, and Wednesday, May 7. The policy statement is scheduled for release on May 7 at 2:00 p.m. Eastern Time (11:00 p.m. Pakistan Standard Time), followed by a press conference with Federal Reserve Chair Jerome Powell at 2:30 p.m. ET (11:30 p.m. PKT) .

What to Expect from the May FOMC Meeting

The Federal Reserve is widely anticipated to maintain the federal funds rate at its current target range of 4.25%–4.50%. This decision comes amid mixed economic signals: a 0.3% GDP contraction in Q1, rising jobless claims, and persistently high inflation, as indicated by March's Personal Consumption Expenditures (PCE) data .

Despite President Trump's calls for rate cuts to stimulate economic growth, the Fed is exercising caution. Inflationary pressures from recent tariff policies and migration issues are contributing to the central bank's decision to hold rates steady for now .

Looking ahead, the likelihood of a rate cut in June has diminished, with market expectations now favoring potential easing in July, contingent on further economic data .

Market Implications

The Fed's decision to hold rates steady is expected to keep borrowing costs, including mortgage rates, relatively unchanged in the near term. However, any hints from Chair Powell during the press conference about future rate cuts could influence market expectations and financial conditions .

Investors are advised to monitor the Fed's statements and economic indicators closely, as these will provide insights into the central bank's future policy direction.