#FOMCMeeting Here’s a concise summary of the June 17–18, 2025 FOMC meeting:
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🏦 Key Policy Decision
Interest rates held steady at 4.25 %–4.50 %, marking a pause amidst heightened uncertainty. Markets had priced in a ~99.9% probability of a hold .
The dot plot (Summary of Economic Projections) indicated only one rate cut projected for 2025 .
Economic Outlook & Risks
Inflation: May CPI and PPI readings came in below expectations, though core inflation remained elevated (above ~2.8%) .
Labor Market: Still resilient, with low unemployment (≈4.2%) , although some analysts highlight signs of softening that could argue for earlier cuts .
Consumer Activity: Retail sales dropped ≈0.9% in May, flagging a deceleration in consumer demand .
Global & Political Factors
Geopolitical tensions (especially in the Middle East) have driven energy prices higher, posing upside risks to inflation .
Tariffs and trade policy decisions are clouding clarity on inflation dynamics, increasing caution .
