#FOMCMeeting
The Federal Open Market Committee (FOMC) meeting is currently ongoing and is being held over two days on May 6 and 7, 2025. The results of the meeting are expected to be announced on Wednesday, May 7 at 2:00 PM Eastern Time (9:00 PM Mecca time), followed by a press conference with Federal Reserve Chairman Jerome Powell at 2:30 PM (9:30 PM Mecca time).
Current economic context:
The interest rate is currently between 4.25% and 4.50%.
Some investors and President Trump are pushing for a rate cut to stimulate growth, but the Fed is expected to keep the rate unchanged due to ongoing inflationary pressures.
The U.S. economy contracted by 0.3% in the first quarter of 2025.
The April jobs report showed the addition of 177,000 jobs, reducing the likelihood of a rate cut at this time.
Recent inflation data showed a rise exceeding expectations.
Impact on markets:
Financial markets (stocks and bonds) are volatile due to conflicting economic signals.
The Fed is taking a cautious approach to monetary policy and is waiting for clearer signals before making any adjustments
