#FOMCMeeting
Federal Open Market Committee (FOMC) meeting held in June 2025
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1- *Interest Rate Hold*
- The interest rate was kept unchanged, with expectations of a potential decrease of 50 basis points in the second half of the year.
- This decision is related to rising inflation due to tariffs and geopolitical tensions in the Middle East, which increases economic uncertainty. [1]
2- *Update on Economic Forecasts*
- *Economic Growth*: Reduced forecasts for 2025 from 2.1% to 1.7%.
- *Core Inflation (PCE)*: Increased forecasts for 2025 to 2.7%.
- *Unemployment Rate*: Increased forecasts to 4.4% for 2025. [2]
3- *Adjusting Balance Sheet Policy*
- Starting in April, the pace of balance sheet reduction was slowed by lowering the maximum redemption of Treasury bonds from $25 billion to $5 billion per month, while maintaining the maximum redemption of mortgage-backed securities at $35 billion. [2]
4- "Wait and See" Approach
- Federal Reserve Chair Jerome Powell indicated that the current policy is appropriate to deal with uncertainty, with readiness to adjust policy.