#FOMCMeeting The Federal Open Market Committee (FOMC) is concluding its two-day policy meeting today, Wednesday, May 7, 2025. The decision on interest rates will be announced at 2:00 p.m. Eastern Time (11:00 p.m. Pakistan Standard Time), followed by a press conference with Fed Chair Jerome Powell at 2:30 p.m. ET (11:30 p.m. PKT).

What to Expect

The FOMC is widely expected to maintain the federal funds rate at its current range of 4.25% to 4.50%. According to the CME Group’s FedWatch tool, there's only a 3.1% probability of a rate cut at this meeting. Despite pressure from President Trump for lower rates to stimulate the economy, Fed officials are adopting a cautious stance, citing inflationary risks from new tariffs and migration policies.

Economists anticipate that any economic impacts from April's tariffs—such as price increases and job losses—will begin appearing in economic data later this summer, potentially prompting rate cuts by July.

Market Implications

The Fed's decision will be closely watched by investors and could influence various financial markets. Key ETFs to monitor include: