#FOMCMeeting

What interest rate does the FOMC expect?

In its meeting on May 8, 2025, the Federal Open Market Committee (FOMC) kept the federal funds rate at 4.25%–4.50%.

According to the Economic Projections Summary published in March, the median projection among FOMC participants anticipates that the federal funds rate will be approximately 3.6% by the end of 2025. This implies a reduction of about 0.65 percentage points, or approximately two to three quarter-point cuts during the remainder of the year.

Market expectations align with this outlook, and traders anticipate three rate cuts totaling 0.75 percentage points in 2025. However, the Federal Reserve has emphasized a data-dependent approach, considering factors such as inflation trends, employment figures, and overall economic growth before making further adjustments.

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