#FOMCMeeting

The Federal Open Market Committee (FOMC) convened on May 6–7, 2025, maintaining the federal funds rate at 4.25% to 4.50%. This decision follows a series of rate cuts in 2024, reflecting the Fed's cautious approach amid economic uncertainties. Despite a surprising 0.3% contraction in Q1 GDP and rising inflation concerns due to President Trump's aggressive tariff policies, the Fed opted for a wait-and-see stance. Fed officials, including Cleveland Fed President Beth Hammack, emphasized the need for clear evidence of a significant labor market downturn before considering further rate cuts. Market expectations now lean toward potential rate reductions in July, with diminishing odds for a change in June. Chair Jerome Powell is expected to address these complexities in his May 7 press conference.