#FOMCMeeting Federal Open Market Committee (FOMC) is concluding its two-day policy meeting today, May 7, 2025. The Federal Reserve is widely expected to maintain its benchmark interest rate at the current range of 4.25% to 4.5%, marking the sixth consecutive meeting without a change. The official decision will be announced at 2:00 p.m. Eastern Time (11:00 p.m. Pakistan Standard Time), followed by a press conference with Fed Chair Jerome Powell at 2:30 p.m. ET .
Key Factors Influencing the Decision
Inflation and Economic Growth: Despite a 0.3% GDP contraction in Q1, inflation remains above the Fed's 2% target, with March's PCE inflation at 2.6%. The labor market shows resilience, adding 177,000 jobs in April .
Political Pressure: President Trump has been urging the Fed to cut rates, citing cooled inflation and high borrowing costs. However, the Fed remains cautious, emphasizing the need for more data before making changes .
Tariff Impacts: Recent tariffs have introduced economic uncertainties, affecting consumer sentiment and manufacturing activity. The Fed is monitoring these developments closely .
Market Expectations
Market analysts anticipate that the Fed will hold rates steady today, with potential rate cuts possibly occurring in July or later, depending on economic indicators .
For more details and live updates, you can follow the Fed's official announcements and press conferences.
