#FOMCMeeting

A state of caution and anticipation prevails in the markets ahead of the Federal Open Market Committee (FOMC) meeting scheduled for June 17 and 18, 2025, amid an economically charged environment of geopolitical tensions and ongoing inflationary pressures. The committee is expected to keep interest rates unchanged in the range of 4.25%–4.50%, continuing its wait-and-see approach to assess the impact of recent actions, particularly the new tariffs imposed by the Trump administration, which have contributed to rising costs of imported goods and increased price pressures.

Inflation remains below the target, but it is slowing down insufficiently, at a time when the labor market shows signs of decline through rising unemployment claims and a slowdown in hiring pace. These contradictions have prompted the Fed to be cautious before making a decision to cut interest rates, despite increasing market expectations that the first cut may occur in September or December, depending on upcoming economic data.

Markets are also closely following the anticipated updates on the interest rate forecast map (dot plot), which may reveal a reduction in the number of expected cuts for this year. As for the awaited statements from the Chair.