#FOMCMeeting
๐ FOMC Meeting Update โ June 17โ18, 2025
*๐ฆ Key Decision:*
The Federal Reserve *held interest rates steady* at *4.25%โ4.50%*, maintaining its cautious stance amid economic uncertainties [1] [2] .
---
๐ Why They Held Rates
- *Geopolitical Risks*: Escalations, like the IsraelโIran conflict, have caused spikes in oil prices and inflation concerns [1] [3] .
- *Domestic Slowdown*: Weak retail and industrial data from May suggests potential stagflation [1] [4] .
- *Tariff Impacts*: Rising trade tensions, including new tariffs, add to inflation uncertainty [2] [4] .
---
๐ Whatโs Next?
1. *Dot Plot Outlook*: Fed officials are expected to revise forecasts โ downshifting from *two rate cuts* to possibly *just one* in 2025 [2] [3] .
2. *Federal Reserve Commentary*: Powell emphasized patience, stating "now is not the time for preโemptive cuts" [4] [5] .
3. *Inflation Watch*: Core inflation (PCE) persistently remains above target (~2.6%), keeping traders alert for hawkish signals [6] [5] .
---
๐ก Market Implications
- *Stocks & Crypto:* With no rate cut, liquidity stays tightโmarkets like Bitcoin may remain near-term range-bound [7] [8] .
