May 2025 FOMC Meeting

The Federal Reserve kept interest rates the same (between 4.25% and 4.5%) because the U.S. economy is in a tricky spot. Prices are going up (inflation), but there’s also a risk that more people could lose their jobs. Fed Chairman Jerome Powell said they are being careful and will wait before making any changes, especially because new taxes on imports (tariffs) from President Trump could make things worse. These tariffs might cause prices to rise even more, hurt the economy, and lead to job losses. Right now, the Fed thinks interest rates are high enough and there’s no rush to lower them. Powell also said it’s too early to decide if keeping prices stable or helping people find jobs should be the bigger priority.#FOMCMeeting