#FOMCMeeting The meeting of the Federal Open Market Committee (FOMC) of the U.S. Federal Reserve will take place on May 6 and 7, 2025. The benchmark interest rate is expected to remain unchanged in the range of 4.25% to 4.5%, despite current political and economic pressures.

🔍 What is at stake?

Political pressures: President Donald Trump has publicly urged the Federal Reserve to cut interest rates, arguing that inflation is decreasing and employment remains strong. However, the Fed has shown resistance to these pressures, focusing on its mandate of price stability and full employment.

Mixed economic data: Although the April employment report showed strength, unemployment claims have increased, and first-quarter GDP unexpectedly contracted by 0.3%. These contradictory indicators complicate the FOMC's decision-making.

Market expectations: Analysts and financial traders anticipate that the Fed will keep rates unchanged at this meeting, with a 97% probability according to current projections. However, expectations for a rate cut have increased for the July meeting, with an 80% probability.

🗓️ Trade policies and the overall economic outlook.