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The financial markets for stocks and cryptocurrencies remain expectant ahead of the decision that the Federal Reserve (Fed), the U.S. central bank, will make this Wednesday, May 7, 2025, regarding interest rates.
Although there is a broad consensus that interest rates will remain unchanged, the tone that the chairman of the agency, Jerome Powell, offers in the speech following the announcement could influence market behavior.
Since January, rates have remained in the range of 4.25% to 4.5% after three consecutive cuts in previous months. According to the CME Group's expectations survey, there is only a 1.8% chance that the Fed will implement a new reduction this time.
The Fed Chairman, Jerome Powell, has indicated that there is no urgency to change monetary policy. In his words, the economy remains 'strong overall', with a 'solid' labor market, reinforcing the likelihood that rates will remain unchanged.
By June 18, the following decision, the probability of a cut increases to 25%, and for the next one, on July 30, it rises to 75%, according to the CME. This is in view of the fact that the Fed, in March, maintained its projection of making two interest rate cuts this year.