In its meeting held on May 6 and 7, 2025, the Federal Open Market Committee (FOMC) decided to keep interest rates in their current range of 4.25% to 4.50%, in a move that reflects a prudent and balanced approach to dealing with current economic challenges. The decision came amid mixed signals, most notably a surprising contraction in GDP of 0.3% during the first quarter, and a slight increase in unemployment rates, against a backdrop of inflation remaining above targets, according to Personal Consumption Expenditures (PCE) data. Nevertheless, the messages coming from the Fed were clear: no rush to tighten, and no haste to ease. The tone appeared calm yet vigilant, with some members indicating the possibility of a rate cut later this year if economic pressures persist, opening a door of hope for the markets. This balanced approach reflects a deep belief in the ability of the American economy to adapt and rise again at a measured and responsible pace.