#FOMCMeeting The Federal Open Market Committee (FOMC) meeting is a crucial event where the Federal Reserve decides on interest rates and monetary policy. Here's what happened in the last meeting ¹ ²:

- *Interest Rate Decision*: The Fed kept interest rates steady at 4.25%-4.50% due to somewhat elevated inflation and solid labor market conditions.

- *Dissents*: Two Fed officials, Vice Chair for Supervision Michelle Bowman and Fed Governor Christopher Waller, dissented, preferring to lower interest rates to support the labor market.

- *Future Policy*: Fed Chair Jerome Powell indicated that the committee is attentive to risks on both sides of its dual mandate but didn't provide clear guidance on future rate cuts.

- *Economic Outlook*: Powell mentioned that the economy's growth has moderated, and inflation remains somewhat elevated.

*Key Points from the Meeting:*

- *Economic Growth*: The Fed revised its economic growth forecast due to risks posed by Trump's tariffs, anticipating a 1.4% growth rate in 2025.

- *Inflation Concerns*: The Fed remains concerned about inflation, which is somewhat elevated, and is committed to bringing it down to its 2% target.

- *Labor Market*: The labor market remains solid, but there are downside risks, according to Powell.

*Market Impact:*

- *Market Reaction*: The market remained steady after the Fed's decision, with traders anticipating potential rate cuts in September based on upcoming economic data.

- *Rate Cut Expectations*: The probability of a September rate cut decreased after the meeting, with futures traders shifting rate-cut expectations to the Fed's late-October meeting.