The Federal Open Market Committee (FOMC) meeting, held on June 12, 2025, maintained interest rates at 5.25%–5.50%, signaling a cautious approach amid persistent inflation. While inflation has shown signs of easing, it remains above the Federal Reserve’s 2% target. Fed Chair Jerome Powell emphasized the need for more evidence of sustained progress before considering rate cuts. Markets had anticipated at least two rate cuts in 2025, but the latest projections suggest only one. The decision reflects the Fed’s focus on price stability while balancing risks to economic growth. Investors now await further data to gauge future monetary policy shifts.
