The Federal Open Market Committee (FOMC) of the U.S. Federal Reserve will hold a meeting on May 6 and 7, 2025, to decide on interest rates. Forecasts indicate that the central bank will keep the interest rate within the current range of 4.25% to 4.50%.
Key Updates:
1. High likelihood of stabilization:
The "CME FedWatch" tool indicates that the likelihood of a rate cut at this meeting does not exceed 1.8%, reinforcing expectations for interest rate stabilization.
2. Political pressures without response:
Despite President Trump's repeated calls for a rate cut to support economic growth, the Federal Reserve remains cautious, citing inflationary risks arising from new tariffs.
3. Market anticipation:
Markets, including cryptocurrencies and gold, are reacting cautiously to the decision expectations. Bitcoin and Ethereum prices have fallen, while gold has risen by more than 2%, supported by a weak dollar and increased demand for safe havens.
Future expectations:
Some analysts expect the Federal Reserve to begin cutting rates starting in July, if tariffs impact inflation and the labor market. However, there are no strong indicators of sufficient economic weakness for an immediate rate cut.