#FOMCMeeting

The Federal Open Market Committee (FOMC) is currently holding its scheduled two-day meeting on May 6–7, 2025. The policy decision will be announced on Wednesday, May 7 at 2:00 PM ET (11:00 PM Pakistan Standard Time), followed by a press conference with Federal Reserve Chair Jerome Powell at 2:30 PM ET .

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🔍 What to Expect from the May 2025 FOMC Meeting

Interest Rates Likely Unchanged: The Fed is widely expected to maintain the federal funds rate at its current range of 4.25%–4.50%, continuing its "wait-and-see" approach amid economic uncertainties .

Economic Context: Despite a surprise 0.3% GDP contraction in Q1 and rising jobless claims, inflation remains elevated. A robust April jobs report, with 177,000 jobs added, has diminished expectations for a June rate cut, now seen as more likely in July .

Political Pressure: President Trump's aggressive tariff policies are introducing inflationary pressures and raising concerns over weaker growth. He has also criticized Fed Chair Jerome Powell, leading to questions about central bank independence .

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📈 Market Reactions

Equities: U.S. stock futures have declined ahead of the Fed meeting, with the S&P 500, Dow Jones, and Nasdaq falling by 0.7%, 0.6%, and 1% respectively, reflecting investor caution .

Cryptocurrencies: Bitcoin's price slightly declined by 0.1% to $94,219, while other major cryptocurrencies like $XRP and Ether dropped by 2.7% and 0.7%, respectively. Analysts suggest the lull could be a healthy pause after strong gains in April .