The Federal Reserve has concluded its latest FOMC meeting for 2025, offering critical insights into monetary policy and economic conditions.
Interest Rates: The Fed maintained interest rates at a range of 4.25%—4.5%, extending its wait-and-see stance amid rising uncertainties.
The Statement warned that uncertainty about the outlook has increased further, with risks of higher unemployment and higher inflation. Core PCE is at 2.6%.
The market is still pricing in 3 rate cuts this year.
Market Reaction: Stock indices are falling and trade at session lows. USD trades -0.1% lower.
Analyst Insight: The latest announcement shows that the Fed is worried about rising unemployment and rising inflation - not a great place for a central bank to be. Powell will likely be questioned in the press conference over which poses the bigger risk.