#FOMCMeeting

The Federal Reserve’s Federal Open Market Committee (FOMC) convened on June 17–18, 2025, amid rising geopolitical tensions and economic uncertainties. The committee decided to maintain the federal funds rate at 4.25%–4.50%, aligning with market expectations and signaling a cautious approach to monetary policy. 

In its Summary of Economic Projections, the FOMC revised its economic outlook, forecasting slower GDP growth of 1.7% for 2025, down from the previous estimate of 2.1%. The unemployment rate is expected to rise to 4.4%, and core PCE inflation is projected at 2.8%, up from 2.5%. These adjustments reflect concerns over potential inflationary pressures and a cooling labor market.  

Despite these revisions, the committee’s “dot plot” indicates a median expectation of two rate cuts later this year, suggesting a more hawkish stance than previously anticipated. Chair Jerome Powell emphasized the Fed’s commitment to its dual mandate of price stability and maximum employment, noting that future policy decisions will depend on incoming economic data and developments in global trade and fiscal policies.  

The FOMC’s cautious approach underscores its focus on balancing economic growth with inflation control amid an uncertain global economic landscape