#FOMCMeeting Here’s a refined version of your update on the FOMC meeting:

FOMC Meeting Update – May 6–7, 2025

The Federal Reserve's Federal Open Market Committee (FOMC) begins its two-day policy meeting today, with markets widely expecting the central bank to keep its benchmark interest rate unchanged at 4.25%–4.50%—a level it has held steady since December 2024.

Key Developments Ahead of the Meeting:

Economic Conditions: Recent indicators paint a mixed economic picture. GDP contracted by 0.3% in the last quarter, but the labor market remains strong, with 177,000 jobs added in April. However, newly imposed tariffs by President Trump have unsettled business sentiment and hampered manufacturing activity, raising fears of potential stagflation.

Policy Challenges: The Fed faces a difficult balancing act as it navigates its dual mandate of price stability and maximum employment. The tariffs could simultaneously fuel inflation and weigh on job growth, complicating policy decisions.

Market Expectations: While a rate cut is not