š¦ FOMC May 2025 Meeting Update
The Federal Reserve commenced its two-day monetary policy meeting on Tuesday, May 6, 2025, with a decision expected on Wednesday at 2 p.m. EDT. Analysts anticipate that the Fed will maintain the federal funds rate at its current range of 4.25% to 4.50%. This cautious approach comes amid concerns over the economic impact of recent tariffs and ongoing inflationary pressures. Fed Chair Jerome Powell is scheduled to hold a press conference at 2:30 p.m. EDT to discuss the Committee's decision and economic outlook.
Market expectations for rate cuts have diminished following a strong April jobs report, reducing the likelihood of near-term easing. However, financial markets anticipate possible cuts starting in July, once the economic consequences of April's imposed tariffsāsuch as price increases and job lossesābegin to reflect in official data.
President Donald Trump continues to pressure the Fed to reduce rates, citing a perfect opportunity to stimulate the economy, though he has walked back earlier threats to remove Powell. Additionally, the Fed is wary of potential stagflationāsimultaneous inflation and unemployment growthāwhich would complicate its policy responses. Powell has indicated a readiness to prioritize addressing the more severe economic issue in such a scenario.
