#FOMCMeeting Fed Keeps Interest Rates Steady, Market Awaits New Signals

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On May 7, 2025, the U.S. Federal Reserve (Fed) concluded its two-day policy meeting and decided to maintain the benchmark interest rate at 4.25%–4.5%, in line with market expectations. This decision was made against a backdrop of mixed signals for the U.S. economy: GDP growth for Q1 decreased by 0.3%, while the labor market remained stable with 177,000 new jobs in April.  

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🔍 Key points from the meeting:

• Pressure from the White House: President Trump has repeatedly urged the Fed to cut interest rates to stimulate the economy, but Chairman Jerome Powell emphasized that the Fed will continue to monitor economic data and will not be influenced by political pressure. 

• Impact of tariffs: The new tariff policies of the Trump administration have heightened concerns about inflation and slowing growth, prompting the Fed to be more cautious in adjusting monetary policy.

• Future forecasts: Although there has been no immediate move to cut interest rates, the market expects that the Fed may start lowering rates in July or later this year, depending on economic developments. 

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📈 Impact on the market:

• Stocks: Major indexes such as S&P 500 and Nasdaq tended to decline slightly ahead of the meeting, reflecting investor caution.

• Cryptocurrency: The prices of Bitcoin and other digital currencies fluctuated slightly, with Bitcoin down 0.1% to around $94,219.

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