**Fed Holds Rates Steady Amid Economic Uncertainty: June 2025 FOMC Meeting**
The Federal Open Market Committee (FOMC) concluded its June meeting today, keeping interest rates unchanged at 4.25%-4.50% for the fourth consecutive meeting. With inflation cooling but still above the 2% target and the labor market resilient, the Fed opted for a "wait-and-see" approach amid lingering uncertainties from trade tariffs and fiscal policy shifts .
Key takeaways:
- **No rate cuts yet**: The Fed emphasized data dependency, with Chair Powell noting policy is "in a good place" to respond to evolving risks .
- **Dot plot scrutiny**: Updated projections may signal fewer 2025 rate cuts, reflecting concerns over sticky inflation and tariff impacts .
- **Market expectations**: Traders now price a 60% chance of a September cut, down from earlier optimism .
The Fed’s stance underscores its balancing act between inflation control and economic growth.
