#FOMCMeeting

The Federal Open Market Committee (FOMC) of the U.S. Federal Reserve is meeting today and tomorrow (May 6 and 7, 2025) to make a decision on interest rates. Forecasts indicate that the central bank will keep the interest rate unchanged, within the current range of 4.25% to 4.50%, amid ongoing anticipation regarding the impact of new tariffs on the U.S. economy.

Key Updates:

1- High likelihood of maintaining rates: The 'CME FedWatch' tool indicates that the chance of a rate cut at this meeting does not exceed 1.8%, reinforcing expectations for a hold.

2- Political pressures without response: Despite President Trump's repeated calls for a rate cut to support economic growth, the Federal Reserve remains cautious, pointing to inflation risks stemming from the new tariffs.

3- Market watch: Markets, including cryptocurrencies and gold, are reacting cautiously to the decision expectations. Bitcoin and Ethereum prices have dropped, while gold has risen by over 2% supported by a weaker dollar and increased demand for safe havens.

Finally, some analysts expect that the Federal Reserve will begin to cut rates starting in July, especially if the effects of the tariffs begin to negatively impact inflation and the labor market. But so far, there are no strong indicators of economic weakness sufficient to justify an immediate rate cut.