#FOMCMeeting FOMC meeting as of today, Tuesday, May 6, 2025:
The Federal Reserve's monetary policy-setting body, the Federal Open Market Committee (FOMC), commenced its two-day meeting today. This highly anticipated gathering, chaired by Jerome Powell, will conclude tomorrow, Wednesday, May 7th.
While no change to the benchmark federal funds rate is expected at this meeting – the rate is widely projected to remain in its current range of 4.25% to 4.50% – the discussions are focused on evaluating the latest economic data and potential future policy direction.
A significant point of consideration for the committee is the impact of recent trade policy developments, specifically the effects of tariffs, on both inflation and employment. The economic landscape presents a mixed picture, with a resilient labor market alongside an unexpected contraction in first-quarter GDP and signs of potentially waning consumer sentiment.
Economists and market participants are closely watching for any signals in the upcoming policy statement and Fed Chair Powell's press conference tomorrow regarding the committee's assessment of these factors and their implications for the timing of potential future interest rate adjustments. Current market expectations suggest the possibility of rate cuts later in the year, though the path remains uncertain and contingent on incoming economic data.
The FOMC's decision will be announced at 2:00 p.m. Eastern Time on Wednesday, May 7th, followed by Chair Powell's press conference at 2:30 p.m. Eastern Time.