The Federal Open Market Committee (FOMC) is currently holding its two-day policy meeting, which concludes tomorrow, Wednesday, May 7, 2025. The policy statement is expected at 2:00 PM ET (11:00 PM PKT), followed by a press conference with Fed Chair Jerome Powell at 2:30 PM ET (11:30 PM PKT).
What to Expect
Markets widely anticipate that the Fed will keep interest rates unchanged at their current target range of 4.25%–4.50%. This would mark the third consecutive meeting without a rate change, as the central bank continues to monitor mixed economic signals and the impact of recent trade policies.
Recent data shows a 0.3% contraction in GDP during Q1, but job growth remains solid, with 177,000 jobs added in April. Inflation remains elevated, with both headline and core PCE measures rising more than expected in March. The Fed is expected to maintain a cautious stance, seeking more clarity before adjusting policy.
President Trump's aggressive tariff policies have introduced inflationary pressures and raised concerns over weaker growth. While some experts are calling for rate cuts, the Fed is likely to wait for more definitive economic data before making any changes.