#FOMCMeeting

The Federal Open Market Committee (FOMC) convened its two-day monetary policy meeting on May 6–7, 2025. The decision on interest rates will be announced on Wednesday, May 7, at 2:00 p.m. EST, followed by a press conference with Federal Reserve Chair Jerome Powell at 2:30 p.m. EST.WSJ+2Investopedia+2CBS News+2

Key Highlights:

Interest Rates: The Federal Reserve is widely expected to maintain the federal funds rate at its current range of 4.25% to 4.5%. This decision comes amid economic uncertainties, including recent GDP contraction and the impact of new tariffs. CBS News+2CBS News+2Kiplinger+2Morningstar+7Kiplinger+7CBS News+7

Economic Indicators: Despite a 0.3% decline in GDP in Q1 2025, the labor market remains resilient, with 177,000 jobs added in April and unemployment steady at 4.2%. Investors+2Kiplinger+2Reuters+2

Inflation and Tariffs: The Fed is monitoring the effects of President Trump's tariffs, which have introduced inflationary pressures and economic uncertainty. These factors contribute to the Fed's cautious approach to altering interest rates. Forbes+11Kiplinger+11CBS News+11Investopedia+1WSJ+1

Future Rate Cuts: Market expectations for a rate cut have shifted, with a 32% chance projected for June and an 80% probability for July. Analysts suggest that the Fed may wait for clearer economic signals before making policy changes. InvestorsKiplinger+1Reuters+1

Political Pressure: President Trump has been advocating for immediate rate cuts to stimulate the economy. However, the Fed maintains its independence and is likely to base decisions on economic data rather than political pressure.

For more detailed information, you can refer to the Federal Reserve's official meeting calendar