#FOMCMeeting The Federal Open Market Committee (FOMC) meeting was held on May 6-7, 2025, where the Federal Reserve decided to keep interest rates unchanged at 4.25%-4.50%. Here's a summary of the key points ¹:

- *Interest Rate Decision*: The Fed maintained its current interest rate stance, citing uncertainty surrounding President Trump's tariff policies and their potential impact on the economy.

- *Economic Projections*: Fed Chair Jerome Powell emphasized that the committee is poised to observe and analyze the economic situation ahead of a potential rate cut, highlighting concerns about higher unemployment and faster inflation.

- *Tariff Impact*: Powell noted that the tariff increases announced so far have been significantly larger than anticipated, which could lead to higher inflation and slower economic growth.

- *Rate Cut Expectations*: Markets expect a rate cut in July, with some analysts predicting further cuts in the second half of 2025, depending on economic developments.

- *US Economy*: The US GDP contracted by 0.3% in the first quarter of 2025, but employment jumped 177,000 in April, and the Personal Consumption Expenditures (PCE) Price Index remained unchanged in March.

The Fed's decision reflects its cautious stance amid economic uncertainties, prioritizing patience and data-driven decision-making. Powell reiterated that the committee would adjust monetary policy as needed to foster maximum employment and price stability ¹.