$BTC Watch | Fed Decision Incoming
May 2025 Fed Meeting: Will Powell Buckle to Trump’s Rate Cut Pressure?
The U.S. Federal Reserve wraps up its two-day policy meeting today, with the decision set to drop at 11:30 PM ET. Markets are watching closely as Fed Chair Jerome Powell faces political heat from President Trump to slash rates, even as inflation remains sticky.
What to Expect:
• No Rate Cut Expected: This would be the third straight meeting with no change.
• Powell Speaks: All eyes on his press conference for rate path signals.
• USD Outlook: A hawkish stance could support the dollar against major peers.
The Fed Funds rate currently sits at 4.25%–4.5%, following a cut in December. According to the CME FedWatch Tool, a May cut is off the table, but there’s a 30% chance of a 25 bps cut in June.
Before the blackout period, Fed officials voiced concern over economic uncertainty tied to the U.S. trade stance. Fed Governor Waller warned of potential job losses and higher unemployment, which he says could open the door to cuts later this year.
Labor Market Snapshot:
• April NFP: +177,000 jobs — a mixed signal in a cooling economy.
Stay tuned. Powell’s tone could shape not just the Fed outlook—but the next big move in crypto and markets.