#FOMCMeeting
The Fed opted to maintain the federal-funds target at 4.25–4.50% during its June 17–18 meeting, marking the fourth consecutive hold. Policymakers emphasized a cautious, data-dependent approach, citing elevated inflation and ongoing uncertainty surrounding new tariffs, geopolitical tensions, and global economic headwinds. Despite a resilient labor market with unemployment steady around 4.2%, and signs of moderating inflation, officials acknowledged that risks to both price stability and employment remain. Updated projections now reflect expectations of only one interest rate cut in 2025, reduced from earlier estimates. Market sentiment is leaning toward a possible rate cut in September. The Fed Chair reiterated the need for patience, signaling that any policy easing will depend on clear evidence of sustained progress on inflation and broader economic stability.