🔴 FOMC Meeting Today: Fed Holds Interest Rates Steady Amid Trump Policy Review — Two Cuts Still Expected in 2025
At the June 2025 FOMC meeting, the Fed held rates at 4.25%–4.50% for the fourth time. Powell signaled caution amid Trump’s policies but projected two rate cuts later this year. Explore key takeaways, economic forecasts, and what it means for loans and markets.
📺 WATCH NOW: Powell LIVE on Fed Rate Decision — FOMC Meeting June 2025 | Market Impact & Rate Cut Outlook
At today’s highly anticipated FOMC meeting, the Federal Reserve voted to leave the federal funds rate unchanged at 4.25%–4.50% for a fourth consecutive time. The decision came in line with expectations, as officials cited the need for further evaluation of the economic impact of President Trump’s new policies on tariffs, immigration, and taxation.
Markets held steady in response, with Powell offering a cautiously measured tone on the outlook for interest rates, GDP growth, and inflation.
🧠Fed Holds Rates: What Was Announced?
During the June 2025 FOMC meeting today, the Federal Reserve:
- Held the federal funds rate at 4.25%–4.50%
- Signaled that economic uncertainty is declining, but still elevated
- Reaffirmed projections for two rate cuts in 2025, while reducing expectations for 2026–27
- Emphasized patience as the Fed assesses Trump administration policies
“We’re seeing some stabilization, but the economic effects of recent policy changes will take time to fully evaluate.”
— Jerome Powell, Fed Chair
📉 Updated Fed Projections (June 2025)
| Metric | March Forecast | June 2025 Update |
|---|---|---|
| GDP (2025) | 1.7% | 1.4% |
| GDP (2026) | 1.8% | 1.6% |
| Unemployment (2025) | 4.4% | 4.5% |
| Unemployment (2026) | 4.3% | 4.5% |
| PCE Inflation (2025) | 2.7% | 3.0% |
| PCE Inflation (2026) | 2.2% | 2.4% |
| PCE Inflation (2027) | 2.0% | 2.1% |
🎙️ Powell’s Press Conference Highlights
In today’s Fed announcement, Powell struck a neutral tone, saying:
“We are seeing signs of stabilization, but the full economic impact of fiscal and immigration policies remains unclear.”
“The Committee continues to project two rate cuts in 2025, but future decisions remain data-dependent.”
The Fed's tone signals caution — but not inaction.
đź’° What It Means for Interest Rates, Loans, and Credit
The decision to hold interest rates today means:
- Auto loans, credit card APRs, and mortgage rates remain elevated
- No immediate relief for borrowers, but cuts could begin later this year
- Fed is maintaining flexibility in response to real-time fiscal policy impacts
For consumers and businesses, this means loans and refinancing may remain expensive through the summer, with some hope for lower rates by Q4 2025.
đź“Š Market Reaction to the Fed Interest Rate Decision
- S&P 500 and NASDAQ held firm after the decision
- Bond yields saw minimal reaction — the outcome was priced in
- Crypto markets showed minor upside as traders speculated on late-year cuts
- Futures slightly adjusted based on the updated GDP and inflation forecast
Trump’s Policy Impact on the Fed's Outlook
The Fed’s language explicitly referenced the uncertainty tied to President Trump’s economic policy direction, particularly regarding:
- Tariffs: impact on supply chains and inflation
- Immigration: effects on labor market dynamics
- Taxation: influence on consumer and business confidence
This marks a rare direct acknowledgment of political context in shaping monetary policy outlooks.
What’s Next?
Key events that could shape the Fed’s next move:
- July CPI + PCE inflation reports
- Labor market trends & payroll reports
- Additional White House fiscal policy guidance
- Next FOMC meeting: July 30–31, 2025
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