#FOMCMeeting #FOMCMeeting
Meeting Date and Official Broadcast
The traditional meeting will be held between June 17 and 18, 2025, which is one of the meetings related to the publication of the Economic Projections Summary (Dot Plot) for the next two years.
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💵 Interest Rate Decision
• The committee kept the federal funds rate at the range of 4.25%–4.50% for the third consecutive time without change.
• Market expectations and surveys unanimously agreed that the decision was to maintain, with no reduction at least until September.
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🔍 Reasons for the Decision
1. Moderate Inflation Data: Consumer and producer price indices have slowed to a comfortable degree, but the impact of tariffs still carries an element of uncertainty.
2. Strong Labor Market: Despite a slight slowdown in job creation, the unemployment rate remained around 4.2%, and the performance of the labor market does not justify a rate cut.
3. Trade and Geopolitical Risks: Tariffs and trade policies along with international tensions (including the escalation between Israel and Iran) slow the pace of rate cuts, considering it an action taken too early.
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📉 Future Expectations