In the Federal Open Market Committee (FOMC) meeting held in June 2025, the U.S. Federal Reserve decided to keep the interest rate unchanged in the range of 4.25%–4.50%, adopting a cautious approach amid current economic and geopolitical challenges.

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🧭 Key New Policies:

1. *Maintaining the Interest Rate*

- The interest rate was kept unchanged, with expectations of a potential reduction of 50 basis points during the second half of the year.

- This decision is linked to rising inflation due to tariffs and geopolitical tensions in the Middle East, increasing economic uncertainty. [1]

2. *Updating Economic Forecasts*

- *Economic Growth*: Downgraded forecasts for 2025 from 2.1% to 1.7%.

- *Core Inflation (PCE)*: Upgraded forecasts for 2025 to 2.7%.

- *Unemployment Rate*: Increased forecasts to 4.4% for 2025. [2]

3. *Adjusting Balance Sheet Policy*

- Beginning in April, the pace of balance sheet reduction was slowed by lowering the maximum redemption of Treasury securities from $25 billion to $5 billion per month, while maintaining the maximum redemption of mortgage-backed securities at $35 billion. [2]

4. *"Wait and See" Approach*

- Federal Reserve Chair Jerome Powell indicated that the current policy is suitable to deal with uncertainty, with readiness to adjust the policy

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