#FOMCMeeting

On May 7, 2025, the Federal Reserve's Federal Open Market Committee (FOMC) decided to maintain the federal funds rate at 4.25% to 4.5%, citing increased risks of inflation and unemployment amid economic uncertainties, particularly due to recent tariff policies. Chair Jerome Powell emphasized a cautious approach, stating that while the economy and labor market remain solid, the potential for stagflation—a combination of stagnant growth and rising inflation—is a concern. The Fed plans to await clearer economic indicators before making further policy adjustments. Markets responded with mixed reactions, reflecting the prevailing uncertainty.