#FOMCMeeting

The Federal Open Market Committee (FOMC) is currently holding its scheduled meeting on May 6–7, 2025, with the policy decision and press conference expected tomorrow, May 7.

Expected Outcome

The Federal Reserve is widely anticipated to maintain its benchmark interest rate at the current range of 4.25% to 4.50%. Market expectations for a rate cut at this meeting are minimal, with CME FedWatch indicating a 99% probability that rates will remain unchanged

This decision aligns with the Fed’s cautious approach amid mixed economic signals. While the U.S. economy experienced a contraction in the first quarter, the labor market remains robust, and inflation has been relatively subdued. However, recent tariffs imposed by President Trump have introduced additional uncertainty, potentially impacting future economic conditions