#FOMCMeeting

The FOMC meeting, which took place on June 17-18, 2025, is a significant event where the Federal Reserve discusses and sets monetary policy. Here's what we know so far ¹ ²:

- *Interest Rate Decision*: The FOMC is expected to keep interest rates unchanged, with the current federal funds rate target range at 4.25-4.50%. The decision is in line with market expectations.

- *Rate Cut Projections*: The Fed's Summary of Economic Projections (SEP) or "dot plot" will reveal the committee's expectations for future rate cuts. In March, the Fed indicated a 50 basis point rate cut in 2025.

- *Economic Outlook*: The FOMC statement highlighted uncertainty around the economic outlook, citing risks to both sides of its dual mandate of price stability and maximum employment.

- *Inflation Concerns*: Inflation remains above the Fed's 2% target, and tariffs are seen as a factor driving inflation expectations. Jerome Powell, the Fed Chair, emphasized the importance of monitoring inflation and its impact on the economy.

- *Market Reaction*: After the meeting, the US stock market saw an uptick, with the Dow Jones and Nasdaq trading higher. The dollar index eased slightly.

The FOMC's decisions and projections will significantly impact the economy, markets, and monetary policy. Key takeaways from the meeting include ² ¹:

- *Monetary Policy Stance*: The Fed will continue reducing its holdings of Treasury securities and agency debt, slowing the pace of decline by reducing the monthly redemption cap on Treasury securities from $25 billion to $5 billion.

- *Economic Projections*: The Fed cut its 2025 GDP growth projection, expecting slower economic growth.

- *Future Rate Cuts*: The timing and magnitude of future rate cuts will depend on the economic outlook and inflation trends. Some analysts expect rate cuts in the September and December meetings.