#FOMC Meeting Federal Reserve's Federal Open Market Committee (FOMC) recently held a meeting on May 7, 2025, where they decided to keep interest rates unchanged at 4.25%-4.50%. Here's a summary of the key points:

- *Interest Rate Decision*: The FOMC chose to maintain the current interest rate range, citing uncertainty around inflation and economic growth.

- *Inflation Concerns*: Fed Chair Jerome Powell emphasized that inflation risks persist, and the committee is closely monitoring economic data.

- *Economic Outlook*: Powell stated that the economy seems healthy, but uncertainties around trade policies and tariffs are being carefully assessed.

- *Rate Cuts*: Powell indicated that rate cuts are possible this year, but the timing depends on future economic data and inflation trends.

Some notable quotes from Jerome Powell include ¹:

- "The right thing to do is to wait here for greater clarity about what the economy is doing."

- "We don't have to be in a hurry... Policy is moderately restrictive."

- "If large increases in tariffs as announced are sustained, they will see higher inflation, lower employment."

Market reaction to the Fed's decision included ²:

- *US Stock Markets*: Initially dropped but later gained, with the Dow Jones Industrial Average trading 0.74% higher.

- *US Dollar*: Rose 0.36% after the Fed's announcement.

- *Investor Expectations*: Markets anticipate potential rate cuts in the future, with some predicting a June rate cut.

The Fed's decision reflects its cautious stance amid economic uncertainties, prioritizing data-driven policy decisions ¹.