#FOMCMeeting

The Federal Open Market Committee (FOMC) recently held a meeting on May 7, 2025, where they decided to keep the federal funds rate unchanged at 4.25%-4.50%. Here are some key highlights.

- *Interest Rate Decision*: The FOMC chose to maintain the current interest rates for the third consecutive meeting, citing uncertainty about the economic outlook and rising risks of higher unemployment and inflation.

- *Economic Outlook*: The committee noted that economic activity has continued to expand at a solid pace, with a stable unemployment rate and somewhat elevated inflation.

- *Future Plans*: The Fed will continue to monitor incoming data and assess the risks to both sides of its dual mandate, considering labor market conditions, inflation pressures, and financial developments.

- *Rate Cuts*: Fed Chair Jerome Powell signaled no rush to cut rates, emphasizing the need to analyze the economy ahead of potential rate cuts. The central bank projects two rate cuts this year, likely bringing borrowing rates lower by half a percentage point.