The Federal Open Market Committee (FOMC) of the U.S. Federal Reserve is meeting today and tomorrow (May 6 and 7, 2025) to decide 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 probability of a rate cut at this meeting does not exceed 1.8%, strengthening the expectations for maintenance.
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 resulting from the new tariffs.
3- Market anticipation: Markets, including cryptocurrencies and gold, are reacting cautiously to the expected decision. 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