**Fed Holds Steady: What to Expect from the May 2025 FOMC Meeting**
The Federal Open Market Committee (FOMC) convenes today and tomorrow, May 6–7, 2025, amid heightened economic uncertainty. Market watchers widely expect the Federal Reserve to keep interest rates unchanged at 4.25%–4.50%, continuing a cautious approach adopted since January.
Despite a 0.3% GDP contraction in Q1 and rising inflation concerns — partly fueled by new trade tariffs — the Fed appears set on a "wait and see" strategy. Policymakers will likely focus on recent inflation trends, labor market resilience, and global economic pressures before making any significant shifts.
With some analysts predicting potential rate cuts later this year, attention will turn to Chair Jerome Powell’s tone during the press conference for hints on future policy direction. Investors across all sectors — including crypto — are watching closely, as any signal of a pivot could impact market sentiment and asset prices globally.
The FOMC’s decision, and how it frames the U.S. economic outlook, could shape financial markets heading into the summer.
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