#FOMCMeeting

As the Federal Open Market Committee (FOMC) convenes on May 6–7, 2025, all eyes are on the Fed's policy stance amid economic headwinds. Despite a 0.3% GDP contraction in Q1 and inflation easing to 2.6% in March, the Fed is expected to hold interest rates steady at 4.25%–4.50%, awaiting clearer signs of inflation nearing its 2% target or labor market weakening. Market participants anticipate potential rate cuts by June, influenced by President Trump's aggressive import tariffs, which have raised inflation concerns and economic uncertainty. The Fed faces a delicate balance, striving to control inflation while supporting economic growth. Investors remain cautious, monitoring upcoming data for signals on future monetary policy shifts.