#FOMCMeeting

At the meeting of the Federal Open Market Committee (FOMC) held on May 6 and 7, 2025, the Federal Reserve decided to keep its benchmark interest rate unchanged in the range of 4.25% to 4.50%, showing a cautious stance in the face of a contradictory economic outlook. While the labor market continues to show strength with 177,000 jobs created in April, GDP in the first quarter contracted by 0.3%, and inflation, as measured by the core PCE index, stood at 2.3% year-on-year in March. This is compounded by the growing uncertainty generated by the tariff policies of former President Trump, which have negatively affected business confidence and consumer spending. Fed Chair Jerome Powell emphasized the need to carefully assess these factors before making further adjustments to monetary policy. The updated FOMC projections indicate a slowdown in economic growth and higher-than-expected inflation, which could limit the expected rate cuts for the second half of the year. The next meeting is scheduled for June 17 and 18.