FOMC Meeting The Federal Open Market Committee (FOMC) will hold a two-day policy meeting today and tomorrow from May 6 to 7, 2025. The market generally expects the Federal Reserve to maintain the benchmark interest rate in the current range of 4.25% to 4.50%, which has been held since December 2024.
Key Developments Ahead of the Meeting
Economic Outlook: Recent data shows a mixed picture. Despite a 0.3% contraction in GDP last quarter, the labor market remains resilient, adding 177,000 jobs in April. However, the new tariffs introduced by President Trump have harmed business confidence and manufacturing activity, raising concerns about potential stagflation.
The FOMC policy statement is expected to be released on Wednesday, May 7, at 2:00 PM. At 2:30 PM Eastern Time, Chairman Powell will hold a press conference. Market participants will closely analyze these communications for insights into the future direction of Federal Reserve policy.