#FOMCMeeting

On May 7, 2025, the Federal Reserve System (Fed) concluded its two-day meeting, leaving the key interest rate unchanged in the range of 4.25%–4.50%. This decision reflects the regulator's cautious approach amid increasing economic uncertainty.

📊 Key outcomes of the meeting:

Rate unchanged: The Fed maintained the current level of the interest rate despite the economic slowdown and rising inflation risks.

Economic indicators: In the first quarter of 2025, the U.S. GDP contracted by 0.3%, attributed to the impact of new tariffs and a decline in business activity. However, the labor market remains resilient: 177,000 jobs were created in April.

Inflation expectations: The Fed raised its forecast for core PCE inflation for 2025 from 2.5% to 2.8%, indicating persistent inflationary pressure.

Future actions: Although some market participants expect a rate cut in July, the Fed emphasizes the need for additional data before making decisions.

🧭 Context and outlook:

President Trump continues to exert pressure on the Fed to lower rates, citing the need to stimulate the economy.