#FOMCMeeting After the FOMC (Federal Open Market Committee) meeting today, May 6-7, 2025, several things that may happen are¹:
- *Interest Rate Decision*: The Federal Reserve is likely to keep interest rates steady in the range of 4.25%-4.50% due to high economic uncertainty in the US caused by the trade tariffs implemented by the Trump administration.
- *Impact of Trade Tariffs*: Economists predict that trade tariffs will affect the economy, although the scale is still uncertain. This forces the Fed to balance between higher inflation risks and slowing economic growth.
- *Potential Interest Rate Cuts*: Markets predict that the Fed may cut interest rates at the next meeting, with a possible cut in July. However, some analysts believe that a rate cut may occur more slowly if "hard" economic data does not show signs of significant weakening.
In the coming months, the Fed must consider several factors, including²:
- *"Hard" Economic Data*: Economic data that shows the real performance of the economy, such as GDP growth and inflation, will be a primary focus for the Fed in making monetary policy decisions.
- *"Soft" Economic Data*: Economic data based on sentiment and expectations, such as consumer and business surveys, will also be considered, but with less weight.
- *Economic Uncertainty*: High economic uncertainty due to trade tariffs and ongoing trade negotiations makes the Fed cautious in making monetary policy decisions.