🦅 FOMC Meeting Update – May 2025

The Federal Reserve concluded its latest meeting today, maintaining the federal funds rate at 4.25%–4.50%. This decision aligns with expectations, as the Fed continues to adopt a cautious approach amid ongoing economic uncertainties.

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💬 Key Takeaways:

Interest Rates: The Fed opted to keep rates steady, reflecting a balanced stance between fostering economic growth and managing inflation risks.

Economic Outlook: Chair Jerome Powell highlighted that while inflation has moderated, it remains above the 2% target, necessitating ongoing vigilance.

Future Projections: The Fed's updated forecasts indicate a slower pace of rate cuts, with only two anticipated in 2025, down from previous expectations of four.

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📊 Market Reactions:

Stocks: The S&P 500 ETF (SPY) is currently trading at $563.51, reflecting a slight dip of 0.59%.

Bonds: The iShares 20+ Year Treasury Bond ETF (TLT) stands at $87.24, down 0.57%.