US Fed Meet Highlights: Jerome Powell-led FOMC keeps interest rates steady at 4.25%-4.50%, sees 50 bps rate cut in 2025

US Fed Meeting 2025 Highlights: US Federal Reserve keeps the benchmark interest rates unchanged at 4.25% – 4.5%. Here are the key highlights from the Fed’s June policy:

– ⁠Dot plot shows wide dispersion on the matrix with outlook of Fed Fund rate around 3.4% in 2027

– ⁠7 official want no rate cut in 2025 up from 4 officials from last meeting.

– ⁠Inflation remains somewhat elevated.

– ⁠Economic projection pointed further stagflationary pressures.

– Forecast lower GDP of 1.4% down 0.3% from March meeting.

– ⁠Fed forecast Fed Rate to be 3.9% at the end of 2025, expecting two rate cuts

– Lowers 2025 growth to 1.4% and increased inflation expectations to 3%

– Forecast unemployment rate at 4.5% in 2025 and 2026

– ⁠Core PCE projected at 3.1%, 0.3% point higher in by end of 2025

– ⁠Unemployment outlook up to 4.5% or 0.1% higher from March and 0.3% higher than the current levels.

US Fed Meeting 2025 LIVE: The Indian stock market traded flat with a negative bias on Thursday as investors remained cautious after the US Fed Chair Jerome Powell’s comments, and escalating tensions in the Middle East.

The Sensex was down 30.58 points, or 0.04%, at 81,414.08, while the Nifty 50 was trading 3.45 points, or 0.01%, lower at 24,809.65. Bank Nifty index also fell 191.45 points, or 0.34%, to trade at 55,637.30.

US Fed Meeting 2025 LIVE: Gold prices traded higher as escalating Israel-Iran buoyed safe-haven demand, although the US Federal Reserve’s cautious stance on future rate cuts kept gains in check. Spot gold price rose 0.2% to $3,376.48 an ounce, while US gold futures eased 0.4% to $3,393.70.

US Fed Meeting 2025 LIVE: The dollar held steady as investors weighed Fed Chair Jerome Powell’s cautionary tone on inflation. The dollar index, which measures the currency against six other units, was at 98.957 and set for a 0.8% gain for the week, its strongest weekly performance since late February.

The euro was last at $1.14805, heading for 0.6% drop in the week, its biggest weekly decline since early May. The yen firmed slightly to 144.86 per dollar, Reuters reported. Sterling was 0.18% lower at $1.3398.

US Fed Meeting 2025 LIVE: Asian markets traded mixed on Thursday after the US Fed policy and as the ongoing Israel-Iran war continued to dent investor sentiment.

Japan’s Nikkei 225 fell 0.27%, while the Topix declined 0.12%. South Korea’s Kospi gained 0.76% and the Kosdaq rose 0.37%. Hong Kong’s Hang Seng index futures indicated a weaker opening.

US Fed Meeting 2025 LIVE: US Treasury yields pared earlier declines on Wednesday after Federal Reserve Chair Jerome Powell said inflation in goods prices is expected to accelerate over the summer as the impact of President Donald Trump’s tariffs works its way to US consumers, Reuters reported. The yield on benchmark US 10-year notes was 0.4 basis points at 4.387%. The interest-rate-sensitive 2-year note yield fell 1.5 basis points to 3.935%. The yield curve between two-year and 10-year notes steepened by around two basis points to 45 basis points.

US Fed Meeting 2025 LIVE: US stock market ended mixed on Wednesday after the US Federal Reserve policy decision and Chair Jerome Powell’s speech.

The Dow Jones Industrial Average fell 44.14 points, or 0.10%, to 42,171.66, while the S&P 500 eased 1.85 points, or 0.03%, to 5,980.87. The Nasdaq Composite ended 25.18 points, or 0.13%, higher at 19,546.27.

On NYSE, advancing issues outnumbered decliners by a 1.28-to-1 ratio, while there were 102 new highs and 55 new lows. On the Nasdaq, 2,613 stocks rose and 1,882 fell as advancing issues outnumbered decliners by a 1.39-to-1 ratio.

US Fed Meeting 2025 LIVE: At 2:40 p.m. (EDT), the Dow Jones Industrial Average dropped nearly 260 points, or 0.61%, to 42,159 points intraday on Wednesday, down from its 42,419 points in the early trading session. The index was trading flat at 42,197.79 points ahead of the US market close.

The Nasdaq Composite index also lost nearly 138 points or 0.70% intraday to 19,503.68 points, compared to its earlier same-day levels of 19,641.62 points, according to Marketwatch data. The index was trading 0.34% higher towards the end of Wednesday’s market session.

The S&P 500 index dropped 37.87 points or 0.62% intraday to 5,974.66 points, compared to its earlier level of 6,012.53 points. The index was trading flat at 5,986.43 points ahead of the US market close.

US Fed Meeting 2025 LIVE: US Federal Reserve’s ‘dot plot’ chart projections show that the median of Fed officials expect to lower the key benchmark interest rates by 50 basis points or 0.5% in 2025. 

The “dot plot” projection is a chart that shows each Federal Reserve official’s expectations for future interest rates. These projections remain the same as the outlook which were released in March 2024. 

US Fed Meeting 2025 LIVE: US Federal Reserve Chairman Jerome Powell said that the unemployment rate has been ‘solid’ and ‘low’ at 4.2% due to the fall in both labour demand and labour supply in the US economy. 

“What you see is an unemployment rate that has been really solid and at a low, low level, not really increasing. It’s been in a good range, and well within the range of mainstream estimates of maximum employment. And that means, like, part of that is that labor demand and labor supply are kind of moving down at the same rate,” said Powell in the press conference. 

“Labor demand is softening. You see that in job creation, but it’s still kind of at a healthy level, and labor supply is diminishing because the immigration numbers that we see are much lower than they were. So the those two factors supplying the band, that’s what has kept it like the unemployment rate in a reasonably, you know, stable place,” said Fed Chairman Jerome Powell. 

US Fed Meeting 2025 LIVE: US Federal Reserve Chairman Jerome Powell, in his press address after the FOMC policy meeting verdict, said that the uncertainty due to the Trump tariffs peaked in April 2025, and since then, it has been coming down. 

“Uncertainity peaked in April and since then has come down…” said Powell in the press conference. 

These comments come after the US Federal Reserve decided to hold the key benchmark interest rates due to the diminished yet ‘elevated’ economic uncertainty for the United States. 

US Fed Meeting 2025 LIVE: US Federal Reserve Chairman Jerome Powell expects that the inflation readings will rise over the course of summer. 

“We’ve had goods inflation just moving up a bit. And of course, we expect, as you point out, we do expect, to see more of that over the course of the summer,” said Fed Chairman Jerome Powell in his press address. 

“We’ve had three months of favorable inflation readings since the high readings of January and February. And that’s, of course, highly welcome news,” he said.

US Fed Meeting 2025 LIVE: On 18 June 2025, the US Federal Reserve’s Federal Open Market Committee (FOMC) kept the key benchmark interest rates ‘unchanged’ at 4.25% to 4.5%. This marked the US Fed’s fourth consecutive interest rate hold since its December 2024 rate cut.  

US Fed Meeting 2025 LIVE: The US Federal Reserve, in its June 2025 FOMC meeting verdict, said that the uncertainty over the economic outlook of the United States has diminished but still remains elevated. 

“Uncertainty about the economic outlook has diminished but remains elevated. The Committee is attentive to the risks to both sides of its dual mandate,” said US Fed FOMC in its statement. 

US Fed Meeting 2025 LIVE: The US Federal Reserve highlighted that US inflation remains somewhat at an ‘elevated level’ despite the lower unemployment rates and solid labor market. 

“Although swings in net exports have affected the data, recent indicators suggest that economic activity has continued to expand at a solid pace. The unemployment rate remains low, and labor market conditions remain solid. Inflation remains somewhat elevated,” said the US Fed’s FOMC in the official statement. 

US Fed Meeting 2025 LIVE: At 2:00 p.m. (EDT), the US Federal Reserve’s Federal Open Market Committee (FOMC) declared the benchmark interest rates ‘unchanged’ at 4.25% to 4.5%.

US Fed Meeting 2025 LIVE: At 2:00 p.m. (EDT), the US Federal Reserve’s Federal Open Market Committee (FOMC) declared the benchmark interest rates ‘unchanged’ at 4.25% to 4.5%.

US Fed Meeting 2025 LIVE: The US Federal Reserve’s policy decision is very important for all credit facilities in the United States, such as loans, credit cards, mortgages, etc. 

If the FOMC decides to keep the benchmark lending rates to the banks unchanged at the range of 4.25% to 4.5%, then consumers will have to wait for the next policy decision to get better deals on many loans and other credit facilities. 

Interest rates are linked to liquidity in the economy. The nation’s central bank controls this liquidity with its rates, which the banks and other financial institutions use to borrow money from the US central bank. 

In case of interest rate cuts, loans and other credit facilities become cheaper as the central banks want to boost liquidity in the economy. In a situation of a rate cut, banks will have more borrowing power, hence they are likely to pass the rate cut to the consumer borrowers. 

US Fed Meeting 2025 LIVE: US President Donald Trump, calling out US Federal Reserve Jerome Powell, thought of appointing himself as the head of the US central bank, citing dissatisfaction about Powell’s policy stance. 

“Maybe I should go to the Fed,” Trump told reporters at the White House ahead of Powell’s policy announcement. “Am I allowed to appoint myself at the Fed? I’d do a much better job than these people,” he said, cited the news agency Reuters. 

The Federal Reserve will publish its Federal Open Market Committee (FOMC) meeting outcome at 11:30 p.m. (IST). After 30 minutes, at 12:00 midnight IST, Jerome Powell will take the podium to address the media conference. 

US Fed Meeting 2025 LIVE: As we edge closer to the Federal Open Market Committee (FOMC) policy outcome announcement, investors may question why Fed Chair Powell is likely to keep the benchmark interest rates unchanged. 

Experts and investors estimate that the policy decision is going to be influenced by a weakening labour market and above-target inflation rates in the US economy. 

Fed’s policy verdict comes against the backdrop of the heightened tensions over the raging Israel-Iran conflict. This results in a situation of uncertainty where the US central bank is likely not to cut its interest rates. 

In the May 2025 policy verdict, Powell cited his concerns about US President Donald Trump’s tariffs on other world nations and said that the FOMC will analyse the effects before any potential rate cut. 

However, investors will be keen to see the future outlook on the upcoming rate cut expectations from the US Fed in 2025. The Federal Reserve will publish its Federal Open Market Committee (FOMC) meeting outcome at 11:30 p.m. (IST).

US Fed Meeting 2025 LIVE: On 7 May 2025, the US Federal Reserve decided to keep the key benchmark interest rates unchanged at 4.25% to 4.5%. 

Chairman Jerome Powell reiterated his stance of ‘no hurry to cut rates’ as the US central bank announced its plans to analyse the economy ahead of a potential rate cut.

“The Committee decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 per cent. In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks,” said the FOMC in May 2025 policy verdict. 

US Fed Meeting 2025 LIVE: The US Dollar index spot price by Bloomberg was down 0.29% to 98.538 as of 11:54 a.m. (EDT) on Wednesday, 18 June 2025, ahead of the Federal Reserve’s interest rate policy announcement. 

US Fed Meeting 2025 LIVE: The US Federal Reserve Chairman Jerome Powell flagged that US debt is on an ‘unsustainable path.’ Powell said it is up to the US Congress to figure out a way to get it back on a sustainable path. 

“I think we do know that the debt is on an unsustainable path, not at an unsustainable level, but on sustainable path. And it’s, it’s on Congress to figure out how to, how to get us back on a sustainable path,” said Jerome Powell in the media briefing after the 7 May 2025 policy announcement. 

US Fed Meeting 2025 LIVE: Investors and people across nations can watch Federal Reserve Chairman Jerome Powell’s address on the official website and the Fed’s YouTube channel. 

Jerome Powell will start the press conference at 2:30 p.m. (EST). For Indian’s waiting for Powell’s announcement, you can tune in to the official broadcast stream at 12:00 midnight (IST) after the FOMC releases the policy decision at 11:30 p.m. (IST). 

Direct Link to US Fed’s Official Broadcast – Click here

US Fed Meeting 2025 LIVE: In the 7 May 2025 Federal Reserve policy verdict, Chairman Jerome Powell said that he is in no hurry to cut interest rates due to the high level of uncertainty in the US economy and the inflation risk imposed by the high tariffs on imports. 

Powell highlighted that the rates committee will observe and analyse the nation’s economic situation before any potential rate cut.

US Fed Meeting 2025 LIVE: US President Donald Trump on Wednesday, 18 June 2025, said that he doesn’t expect Federal Reserve Chairman Jerome Powell to cut the interest rates ahead of the police verdict. 

“Powell probably won’t cut today,” said Donald Trump, according to the news agency Reuters report. 

US Fed Meeting 2025 LIVE: The US Federal Reserve is expected to maintain its earlier projection of two interest rate cuts in 2025, with the first 25 basis point cut in September 2025. 

“US FED is expected to keep interest rates unchanged at 4.25-4.5% in its upcoming 17-18 June meeting. Meanwhile, recent data is showing inflation to be moderating while the labor market is still showing signs of resilience. All eyes are expected to be on the Summary of Economic Projections and the dot plot for the way forward by the Fed,” said Vaqarjaved Khan, Sr. Fundamental Analyst at Angel One Ltd. 

“The Fed is expected to maintain its earlier projection of two interest cuts of 25 bps happening in 2025 with first of the 25 bps cut to happen in September. Because of geopolitical and trade relation risks inflation forecast can be slightly higher along with growth moderately slowing down. Commentary from Jerome Powell and his tone while addressing issues such as inflation risk and global uncertainties remains the key,” he said. 

US Fed Meeting 2025 LIVE: The US Federal Reserve releases a chart, which is also known as the ‘dot plot,’ where the graphics show people what each US Fed official expects for the direction of the interest rates in the future. 

According to earlier reports, there are two interest rate cuts expected in the year 2025. 

US Fed Meeting 2025 LIVE: US stock market indices like the Dow, Nasdaq and S&P 500 were trading higher after a positive open amid Israel-Iran conflict uncertainties prior to the Federal Reserve’s policy announcement. 

The Dow Jones Industrial Average was trading 0.30% higher at 42,336.40 points as of 10:12 a.m. (EDT), compared to 42,215.80 points at the previous close. 

The Nasdaq Composite was up 0.44%, trading at 19,606.01 points, compared to 19,521.09 points at the previous US market close. The S&P 500 also gained 0.42 per cent, trading at 6,007.81 points, compared to 5,982.72 points at the previous close. 

US Fed Meeting 2025 LIVE: The US Federal Reserve’s June 2025 police decision is likely to be influenced by a weakening labour market and above-target inflation rates. 

This decision also comes amid the rising tensions between Iran and Israel, which have served as an element of uncertainty for other world economies as well as global market investors. 

The US Fed will publish its Federal Open Market Committee (FOMC) meeting outcome at 11:30 p.m. (IST). 

US Fed Meeting 2025 LIVE: Brokerage firms and market investors expect the US central bank to keep lending rates unchanged, but they are looking forward to the Fed’s future guidance amid ongoing geopolitical risks. 

“Market participants now shift focus to the U.S. Federal Reserve’s policy decision due later today. While a status quo on rates is widely anticipated, the Fed’s forward guidance will be closely parsed for cues amid heightened geopolitical risk in the Middle East and recent U.S. tariff impositions,” said Bajaj Broking Research. 

US Fed Meeting 2025 LIVE: The US Bureau of Labor Statistics data showed that the unemployment rate for the month of May 2025 was at 4.2%, the rate was unchanged when compared to April 2025 levels. 

However, on a year-on-year basis, the US unemployment rate witnessed a 20 basis point jump to 4.2% in May 2025, compared with 4% in May 2024. 

US Fed Meeting 2025 LIVE: The US consumer price index, excluding the food and energy categories, witnessed a 0.1% rise from April 2025 levels, according to data reviewed by the news agency Bloomberg. 

The Federal Reserve data, citing the Bureau of Economic Analysis, showed that the US inflation indicator, or the Personal Consumption Expenditures (PCE) Price Index, was at 2.1% in April 2025. 

US Fed Meeting 2025 LIVE: Nasdaq futures were trading marginally higher with 0.17% gains at 21,991.75 as of 6:22 p.m. (IST) ahead of the Wall Street open on the US Federal Reserve’s policy outcome day. 

The Dow and S&P futures remain flat but in the positive range prior to the US market open on 18 June 2025. 

US Fed Meeting 2025 LIVE: The US Federal Reserve decided to keep the key benchmark interest rates unchanged at the range of 4.25% to 4.5% on 7 May 2025 as Chairman Jerome Powell reiterated his stance of ‘no hurry to cut rates’ as the US central bank announced its plans to analyse economy ahead of a potential rate cut. 

“The Committee decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 per cent. In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks,” said the FOMC in the official release.