#FOMCMeeting The Federal Open Market Committee (FOMC) is holding its two-day meeting today and tomorrow, May 6–7, 2025. A policy decision is expected to be announced on Wednesday, May 7, at 2:00 p.m. Eastern Time (11:00 p.m. in Dhaka).

Current Expectations

Despite recent economic challenges—including a surprising 0.3% contraction in Q1 GDP and rising jobless claims—the Federal Reserve is widely anticipated to maintain the federal funds rate at its current range of 4.25%–4.50%. This cautious approach reflects concerns over inflationary pressures stemming from President Trump's aggressive tariff policies, which have introduced uncertainty into the economic outlook .

Fed Chair Jerome Powell and other policymakers have emphasized the need for patience, suggesting that any rate cuts are more likely to occur later in the year, possibly in July or beyond, depending on the evolution of economic data .

Market Reactions

Financial markets are closely monitoring the Fed's stance. While some investors had hoped for a rate cut in May, the prevailing sentiment is that the central bank will adopt a wait-and-see approach. Futures markets now increasingly predict a potential rate cut in July, rather than June .

Upcoming Developments

Following the policy announcement, several Federal Reserve officials, including Governors Michael Barr, Adriana Kugler, Christopher Waller, and Lisa Cook, are scheduled to speak. Their remarks could provide further insights into the Fed's economic outlook and future policy direction .