Based on the latest available data, it is highly unlikely that the Federal Reserve will cut interest rates at its meeting scheduled for Wednesday, May 7, 2025.
According to the CME Group’s FedWatch tool, there is a 97% probability that the Fed will maintain its benchmark rate at the current range of 4.25% to 4.5% . This expectation aligns with the Fed’s recent “wait-and-see” approach, as officials assess the economic impacts of recent policy changes, including President Trump’s tariffs.  
While President Trump has publicly advocated for immediate rate cuts, citing cooling inflation and the need to stimulate economic growth, the Fed remains cautious. Recent data presents a mixed economic picture:
• Inflation remains above the Fed’s 2% target, with consumer inflation at 2.4% year-over-year in March and a one-year outlook projecting 6.5% .
• The labor market shows resilience, with April’s job growth exceeding forecasts .    
Given these factors, the Fed is expected to keep rates steady in the near term. Market analysts anticipate that any potential rate cuts may occur later in the year, possibly starting in July, depending on how economic conditions evolve . 
In summary, while there is pressure for the Fed to reduce rates, current economic indicators and the Fed’s commitment to data-driven decisions suggest that a rate cut at tomorrow’s meeting is improbable.