The Federal Open Market Committee met on June 17 2025, to assess U.S. monetary policy and economic conditions. The committee, led by Chair Jerome Powell, decided to maintain the federal funds rate at 4.25%–4.50%, reflecting a cautious "wait-and-see" approach amid stable inflation and a steady labor market with a 4.2% unemployment rate. No rate cuts were anticipated, with markets expecting potential cuts in September and December. The FOMC released its Summary of Economic Projections (SEP), or "dot plot," indicating one to two rate cuts for 2025, influenced by uncertainties like potential tariff impacts on inflation. Powell’s press conference on June 18 at 2:30 p.m. EST provided insights into the Fed’s outlook, emphasizing economic stability. Investors closely monitored for dissent among members and signals on future policy, expecting minimal market disruption.
