#FOMCMeeting
FOMC Maintains Caution: No Rate Cut Yet Despite Trump’s Pressure”
The Federal Open Market Committee (FOMC) is convening its two-day policy meeting today and tomorrow, May 6–7, 2025. While investors and the White House are advocating for interest rate cuts, the Federal Reserve is expected to maintain the current federal funds rate at 4.25%–4.50%. 
⸻
🇺🇸 Fed’s Position: Holding Steady Amid Economic Uncertainty
Despite a 0.3% GDP contraction in Q1 2025, the Fed is likely to keep rates unchanged. Chair Jerome Powell and other policymakers are cautious about reducing rates too soon, especially with inflationary pressures from recent tariffs and a still-strong labor market. April saw the addition of 177,000 jobs, indicating economic resilience.   
President Trump has been vocal in urging the Fed to lower rates to stimulate growth, but Powell is expected to emphasize the importance of controlling inflation and maintaining long-term economic stability. 
⸻
📉 Market Outlook: Rate Cuts Possibly Delayed
Market analysts anticipate that the Fed will hold rates steady in this meeting, with potential rate cuts being considered for later in the year, possibly in July or December. This cautious approach is due to the complex economic environment, including inflation risks and the impact of tariffs.