#FOMCMeeting #FOMCMeeting The Federal Open Market Committee (FOMC) of the U.S. Federal Reserve meets today and tomorrow (May 6 and 7, 2025) to decide on interest rates. Forecasts suggest that the central bank will keep the interest rate unchanged, within the current range of 4.25% to 4.50%, amid ongoing anticipation regarding the impact of new tariffs on the U.S. economy.

Key Updates:

1- High likelihood of holding: The "CME FedWatch" tool indicates that the probability of a rate cut in this meeting does not exceed 1.8%, reinforcing expectations of holding.

2- Political pressures without response: Despite President Trump's repeated calls for a rate cut to support economic growth, the Federal Reserve remains cautious, pointing to inflation risks arising from the new tariffs.

3- Market watch: Markets, including cryptocurrencies and gold, are reacting cautiously to the decision expectations. Bitcoin and Ethereum prices have declined, while gold has risen by more than 2% supported by a weaker dollar and increased demand for safe havens.

Finally, some analysts expect the Federal Reserve to begin cutting rates starting in July, especially if the effects of the tariffs begin to negatively impact inflation and the labor market. But so far, there are no strong indicators of economic weakness sufficient to justify an immediate rate cut.