Fed Interest Rate Decision Today – 25bps Cut Expected
The U.S. Federal Reserve is poised to deliver its first rate cut of 2025, with markets pricing in a near-certain 25-basis-point reduction. While the MOVE itself is widely anticipated, the critical question lies in the trajectory of subsequent cuts—analysts project six more over the next two years, contingent on evolving economic conditions.
Chair Jerome Powell's post-announcement commentary will carry equal weight to the decision itself. A hawkish tilt emphasizing inflation vigilance could temper market enthusiasm, while dovish signals aligning with projected cuts may reinforce risk asset support. The SEP release will serve as the Fed's roadmap, revealing whether policymakers share traders' expectations of a prolonged easing cycle.