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US Fed Policy Meeting Today: Will Jerome Powell Bow To Trump's Pressure For Rate Cuts?

US Fed Meeting May 2025: The US Federal Reserve will conclude its two-day policy meeting on Wednesday (May 7) and the announcement will be made at 11:30 pm today. The monetary policy review comes amid the tariff war and US President Donald Trump’s pressure to cut rates. According to analysts, Jerome Powell-led Federal Open Market Committee (FOMC) is expected to keep its key short-term interest rate unchanged amid persistent inflationary pressures and political heat from the Trump administration.

📍The Federal Reserve is expected to leave the policy rate unchanged for the third consecutive meeting.

📍Fed Chairman Powell will speak on the policy outlook in a press conference.

📍The US Dollar could stay resilient against its rivals if the Fed keeps its focus on the inflation outlook.

The United States (US) Federal Reserve (Fed) will announce monetary policy decisions following the May policy meeting on Wednesday. Market participants widely anticipate the US central bank will leave policy settings unchanged for the third consecutive meeting, after cutting the interest rate by 25 basis points (bps) to the 4.25%-4.5% range in December.

The CME FedWatch Tool shows that investors virtually see no chance of a rate cut in May, while pricing in about a 30% probability of a 25 bps reduction in June. Hence, market participants will scrutinize the changes in the policy statement and comments from Fed Chairman Jerome Powell in the post-meeting press conference for fresh hints on the timing of the next rate cut.

Before the Fed went into the blackout period, several policymakers voiced their concerns over the uncertainty created by the US’ new trade regime weighing on the labor market.

Similarly, Fed Governor Christopher Waller told Bloomberg that he wouldn’t be surprised to see more layoffs and higher unemployment, adding that rising unemployment could pave the way for rate cuts. As the Bureau of Labor Statistics reported that Nonfarm Payrolls rose by 177,000 in April