The Federal Open Market Committee (FOMC) is concluding its two-day meeting today, June 18, 2025. While the market widely anticipates the Federal Reserve to maintain current interest rates, all eyes are on the updated "dot plot" and economic projections, which will offer crucial clues about future rate trajectories.
If the FOMC does announce rate cuts, it would likely spark a significant rally in the stock market. Lower interest rates reduce borrowing costs for businesses, potentially boosting corporate profits and encouraging investment. Additionally, lower rates make bonds less attractive, pushing investors towards equities. However, such a move would also signal economic weakness, a factor investors would weigh carefully.