#FOMCMeeting *๐ FOMC Meeting Summary ๐*
The Federal Reserve (Fed) held interest rates steady at 4.25%-4.5% on June 17-18, 2025, consistent with market expectations ๐. The following items are highlights ยน:
- *Uncertainties* and *Risks*: The Fed wants to highlight the increased uncertainty for the economic outlook and is thus increasing the risks to inflation and unemployment โ ๏ธ.
- *Monetary Policy*: The Committee will continue to monitor the economic data and make modifications, if necessary, but the Fed wants to keep all options open with future rate cuts since rate increases are not in the cards ๐.
- *FED Policy Projections*: In the Fed's Summary of Economic Projections and "dot plot," there are expectations of potential rate cuts later in 2025. In fact, some economists believe rate cuts could happen as early as September! ๐
- *Markets*: The US Treasury market was unreactive after the meeting, although traders accessed Powell's press conference and "dot plot" for clues about monetary policy choices ๐ผ.
*What happens next? ๐ค*
- Traders will read Powell's press conference for information about potential future rate decisions ๐.
- The Fed's future decisions will depend on the economic data and several measures of inflation ๐.
- Currently, the markets are placing a quarter-point rate decision and in addition price and speculate future rate cuts in September ๐.
*Stay Tuned! ๐*
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