The Federal Reserve Keeps Interest Rates Steady, Dow Jones Turns from Up to Down, Closing Down 44 Points

June 19, 2025

The latest meeting of the Federal Reserve decided not to cut interest rates for now, disappointing markets that were anticipating a rate decrease. U.S. stocks reversed course on Wednesday, with the Dow Jones Industrial Average at one point rising nearly 300 points, but ultimately closing down 44 points.

The Federal Reserve's statement indicates it is not in a hurry to start cutting rates, which led to the Dow erasing early gains and gently closing lower. The Nasdaq, however, performed relatively well, finishing slightly higher.

At the close:

The Dow fell 44.14 points, a decrease of 0.1%, closing at 42,171.66 points.

The S&P 500 index dipped 1.85 points, a decrease of 0.03%, closing at 5,980.87 points.

The Nasdaq rose 25.18 points, an increase of 0.13%, closing at 19,546.27 points.

Analysts noted that despite upward risks to the inflation outlook, the Federal Reserve still maintains its forecast of two rate cuts within the year, which is somewhat surprising. Seema Shah from Principal Asset Management stated that given the high uncertainty surrounding the economic outlook, the Federal Reserve itself seems unsure about the future path.

Jay Woods, Chief Strategist at Freedom Capital Markets, believes that the Federal Reserve's current attitude resembles a “wait and see” strategy when dealing with certain complex issues. Although some uncertainties have decreased, the Federal Reserve's confidence in its dual mandate (price stability and full employment) still seems insufficient. The market should expect the Federal Reserve to adopt a cautious approach of “one meeting, one decision” until the policy path becomes clearer.