#USHouseMarketStructureDraft The Federal Open Market Committee (FOMC) recently concluded its meeting on May 6-7, 2025. The committee maintained the federal funds rate at 4.25%-4.50% but indicated potential rate cuts later in the year. According to the FOMC's projections, the interest rate might decrease by 0.25 percentage points twice, bringing the rate down to 3.75%-4.00% by year-end.
*Key Takeaways:*
- *Current Interest Rate*: 4.25%-4.50%
- *Potential Rate Cuts*: Two possible cuts, each by 0.25 percentage points
- *GDP Growth Forecast*: Revised down to 1.7% from 2.1% for 2025
- *Inflation Projection*: Revised upward to 2.7%
*Upcoming FOMC Meetings in 2025:*
- *June 17-18*
- *July 29-30*
- *September 16-17*
- *October 28-29*
- *December 9-10*
The FOMC's decisions significantly impact financial markets, mortgage rates, and economic growth. Markets anticipate two interest rate cuts throughout the remainder of the year, potentially concentrated in the latter half.