#FOMCMeeting The Federal Reserve's two-day FOMC meeting concluded today, May 7, 2025, with the decision to maintain the federal funds rate at 4.25%–4.50%. This move aligns with market expectations and reflects the Fed's cautious approach amid economic uncertainties.

Kiplinger

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BusinessCraft Nordic

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Reuters

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Despite a recent 0.3% contraction in Q1 GDP, the labor market remains resilient, with 177,000 jobs added in April. However, escalating trade tensions, particularly due to President Trump's aggressive tariff policies, have introduced new inflationary pressures and dampened business sentiment .

Reuters

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Kiplinger

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Investor's Business Daily

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Kiplinger

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Reuters

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Fed Chair Jerome Powell emphasized the need for a "wait-and-see" approach, highlighting the complexities of balancing inflation control with economic growth. Market participants are now focusing on the July meeting, where a rate cut remains a possibility, depending on forthcoming economic data .

Kiplinger

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Investor's Business Daily

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Investors are advised to monitor upcoming economic indicators and the Fed's communications for insights into future monetary policy directions.

Sources