$BTC

The Federal Reserve's Federal Open Market Committee (FOMC) held its latest monetary policy meeting from May 6 to 7, 2025. According to current market expectations, the federal funds rate will remain between 4.25% and 4.5%, and no adjustments are anticipated.

Despite a surprising contraction of 0.3% in the U.S. Gross Domestic Product (GDP) in the first quarter of 2025, and concerns over inflation sparked by President Trump's aggressive tariff policies, FOMC officials generally support maintaining the current interest rate level. April's employment report shows that the labor market remains strong, but the rise in unemployment claims also reflects uncertainty in the economic outlook.

The market widely expects that the Federal Reserve may consider lowering interest rates at the July meeting, while the likelihood of a rate cut in June is diminishing. President Trump has publicly criticized Fed Chairman Powell and called for an immediate rate cut, citing declining inflation and strong employment. However, the Federal Reserve remains focused on maintaining a balance between inflation and employment risks, especially against the backdrop of escalating trade tensions.

Other central banks around the world, such as the Bank of Japan and the Bank of England, are also taking a cautious approach in response to trade-related uncertainties. Financial markets have shown volatility, with the S&P 500 index recovering from early losses. Analysts expect Chairman Powell to discuss the complex macroeconomic situation, including the potential impact of tariffs and labor market trends, at the press conference on May 7.