The Federal Open Market Committee (FOMC) of the U.S. Federal Reserve is holding a meeting on May 6 and 7, 2025, to decide on interest rates. Predictions indicate that the central bank will maintain the interest rate in the current range of 4.25% to 4.50%.
Key Updates:
1. High likelihood of keeping rates steady:
The "CME FedWatch" tool indicates that the probability of a rate cut at this meeting does not exceed 1.8%, reinforcing expectations of maintaining the interest rate.
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 inflationary risks stemming from new tariffs.
3. Market anticipation:
Markets, including cryptocurrencies and gold, are reacting cautiously to the anticipated decision. Bitcoin and Ethereum prices have decreased, while gold has increased by more than 2%, supported by a weaker dollar and increased demand for safe havens.
Future outlook:
Some analysts expect the Federal Reserve to begin cutting rates starting in July, should tariffs impact inflation and the labor market. However, there are no strong indicators of sufficient economic weakness for an immediate rate cut.