#FOMCMeeting

The Federal Open Market Committee (FOMC) is indeed holding a two-day policy meeting on May 6-7, 2025. Here's what you need to know ¹:

- *Interest Rate Decision*: The FOMC is expected to hold interest rates steady at 4.25%-4.50%. There's a 97.3% probability of no rate cut, according to 30-day federal funds rate futures prices.

- *Statement and Press Conference*: The market will closely watch the FOMC statement and Fed Chair Jerome Powell's press conference for hints on future monetary policy decisions, particularly regarding President Trump's tariffs and their potential impact on inflation and economic growth.

- *Tariffs and Economic Impact*: Powell may face questions about the potential effects of Trump's tariffs on the economy. Some experts believe the Fed will acknowledge the uncertainty surrounding tariffs and their potential to cause higher inflation and lower growth.

- *Rate Cut Expectations*: The probability of a 25 basis point rate cut in June has fallen to 29.4% from 60.5% last week. Some economists expect the Fed to hold rates steady for now and potentially cut rates later in the year.

- *Economic Indicators*: Recent data, such as the April jobs report, has shown a strong labor market, which may give the Fed room to wait and observe the economy's response to Trump's policies.