US Fed Meeting Highlights: Federal Reserve keeps interest rates ‘unchanged’ at 4.25-4.50% as inflation risk persists

US Fed Meeting LIVE: As the Fed keeps interest rates steady, Brazil’s central bank raised its interest rate by a half-point to 14.75% on Wednesday.

US Fed Meeting LIVE: Federal Reserve Chair Jerome Powell clarified that they will not rush to lower borrowing costs until they receive certainty over the direction of the White House on trade policy, Bloomberg News reported.

US Fed Meeting LIVE: Following continuous criticism and pressure from US President Donald Trump over rate cuts, Powell noted, “it doesn’t affect doing our job at all.” 

US Fed Meeting LIVE: “Consumers keep spending, credit card spending, it’s still a healthy economy — albeit one that is shrouded in some very down deep sentiment on the part of people and businesses,” Fed Chair Jerome Powell said at the press briefing after keeping the interest rate unchanged.

Speaking on Fed's latest stance, William Dudley, the former New York Fed president told Bloomberg Television“The Fed is not really sure where tariffs are going to land, which is important, and when they land they’re not really sure what the consequences are going to be on growth versus inflation."

Dudley further added, “this is not just about the central scenario, it’s also about risk management. Try not to do the wrong thing so that you can respond effectively as things actually unfold.”

US Fed Meeting LIVE: Despite keeping the benchmark interest rates unchanged, Fed Chair Jerome Powell warned about the concerns of higher unemployment and faster inflation. Federal Reserve asserted to keep interest rates steady till they have an understanding of where the US economy is headed to amid a range of tariffs imposed by the Donald Trump administration.

US Fed Meeting LIVE: After a brief fall on the interest rates announcement, the stock markets in the US gained, with the Dow Jones Industrial Average trading 0.74% higher at 41,130.29 points as of 3:48 p.m. (EDT).

The S&P 500 index is trading 0.40% higher at 5,629.06 points. However, the Nasdaq Composite index was trading 0.20% lower at 17,653.96 points on Wednesday's Wall Street session. 

US Fed Meeting LIVE: US Federal Reserve Chairman Jerome Powell responded to criticism of US President Donald Trump questioning his role as the head of the Fed and said that it doesn't affect his job at all. 

“Doesn't affect doing our job at all. We're always going to do the same thing, which is we're going to use our tools to foster maximum employment and price stability for the benefit of the American people,” said Powell. 

“We're always going to consider only economic data, the outlook, the balance of risks, and that's all we're going to consider. So it really doesn't affect either our job or the way we do it,” he said.

US Fed Meeting LIVE: US Federal Reserve Jerome Powell said that the US debt has reached an unsustainable path, and now Congress has to decide how 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 Powell in the media briefing. 

US Fed Meeting LIVE: US Federal Reserve Chairman Jerome Powell refuses to answer questions on Donald Trump's comments about “not to remove” him from his current position. 

US Fed Meeting LIVE: Bloomberg's US Dollar Spot Index rose 0.36% to 99.598 after the US Federal Reserve decided to hold the key benchmark interest rates “unchanged” at the range of 4.25% to 4.50% in the policy announcement on May 7, 2025. 

US Fed Meeting LIVE: US Federal Reserve's Chairman Jerome Powell is in no hurry to cut rates amid the ongoing economic uncertainties due to the high tariffs on imports and geopolitical risks. 

“We think the right we're in the right place to wait and see how things evolve. We don't feel like we need to be in a hurry. We feel like it's appropriate to be patient. And you know, when when things develop. Of course we have a we have a record of we can move quickly when that's appropriate. But we think right now the appropriate thing to do is to wait and see how things evolve,” said Jerome Powell in his media address. 

US Fed Meeting LIVE: The US Federal Reserve's Chairman, Jerome Powell, said that it is too early to determine the effect of the tariffs imposed by US President Donald Trump. 

US Fed's policy decision is also based on observing the upcoming economic data before a possible rate cut. 

“All these policies are still evolving, however, and their effects on the economy remain highly uncertain. As economic economic conditions evolve, we'll continue to determine the appropriate stance of monetary policy based on the incoming data, the outlook and the balance of risks if the large increases in tariffs that have been announced or sustained, they're likely to generate a rise in inflation, a slowdown in economic growth and an increase in unemployment,” said Powell. 

US Fed Meeting LIVE: “The tariff increases announced so far have been significantly larger than anticipated,” said US Federal Reserve Chairman Jerome Powell. 

US Fed Meeting LIVE: “Our Open Market Committee decided to leave our policy interest rate unchanged, the risks of higher unemployment and higher inflation appear to have risen, and we believe that the current stance of monetary policy leaves us well positioned to respond in a timely way to potential economic developments,” said Jerome Powell in his press briefing. 

US Fed Meeting LIVE: US Federal Reserve Chairman Jerome Powell says that interest rates are kept unchanged due to the increasing risk of higher unemployment and higher inflation in the US economy. 

US Fed Meeting LIVE: US Federal Reserve to consider labour market conditions, inflation pressures, and inflation expectations, among other things, to prepare for the next adjustment in the monetary policy stance. 

“Committee's assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments,” said US Fed's FOMC in its official announcement. 

US Fed Meeting LIVE: US Fed on Wednesday, May 7, 2025, decided to keep rates unchanged at 4.25-4.50% in order to assess the US economy more in terms of its evolving outlook and upcoming risks. 

“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. 

US Fed Meeting LIVE: US Fed keeps interest rates ‘unchanged’ at 4.25-4.50%.

US Fed Meeting LIVE: At 1:50 p.m. (EDT), the Dow Jones Industrial Average was up 0.72%, trading at 41,122.58 points, the S&P 500 index was trading 0.29% higher at 5,615.11 points, while the Nasdaq Composite index was down 0.28%, trading at 17,643.05 points ahead of US Fed's policy announcement on May 7, 2025. 

US Fed Meeting LIVE: US Federal Reserve kept the key benchmark interest rates unchanged at 4.25 to 4.50 per cent in its March 2025 policy announcement, projecting a two-quarter-percentage-point rate cut by the end of this year. 

US Fed Chairman Jerome Powell is set to announce the key benchmark interest rates on Wednesday, May 7, 2025. The Federal Reserve's announcement will be followed by a press conference where Powell will make his address at 12:00 midnight (IST). 

US Fed Meeting LIVE: Anil Rego, the founder and fund manager at Right Horizons PMS, believes that the US Fed will maintain its key benchmark interest rates at 4.25 to 4.50 per cent for the time being. 

He highlighted persistent inflation concerns and a still-strong labour market as reasons behind his stance on the US Fed's expectation. He further said that uncertainties around trade policies, particularly Trump's tariffs, complicate the Fed's outlook. 

Rego said that rate cuts are expected only if the labour market weakens significantly or if inflation falls steadily toward the Fed's 2 per cent target. For now, the central bank is opting for caution, and markets anticipate the first rate cut in July. Depending on economic developments, more cuts may be possible in the second half of 2025.

US Fed Meeting LIVE: US Fed's ‘Survey of Salient Risks to Financial Stability’ found that the respondents have highlighted the risk of a "persistent inflation' fueled by Trump tariffs and disruption of the global supply chain. 

“Respondents continued to note the risk of persistent inflation, though not as frequently as in surveys over the past several years. Participants highlighted that inflation could rise from tariffs and disruptions to global supply chains. Several contacts specifically mentioned the risk that longer-term inflation expectations could become unanchored,” according to the US Fed's Financial Stability Report released in April 2025. 

US Fed Meeting LIVE: The US Federal Reserve's Financial Stability Report, released in April 2025, shows that the prices in the nation remain high relative to the fundamentals across the range of markets. 

“In April, announcements about changes to U.S. trade policy sparked a wave of price declines and volatility across multiple markets as market participants reported heightened uncertainty about the breadth and duration of possible changes to global trade patterns, perceptions of an increased risk of a slowdown in economic activity, and concerns about higher inflation. Nonetheless, prices remained high relative to fundamentals across a range of markets,” said US Fed in its report. 

US Fed Meeting LIVE: Emkay Global's Lead Economist, Madhavi Arora, said that they expect the key benchmark lending rates to be kept “unchanged” due to the high level of uncertainties and tariff woes. 

“We expect the upcoming FOMC to keep policy rates unchanged amid elevated uncertainty, tariffs, rising inflation expectations and a deterioration in household and business sentiment, with Powell signalling no rush to cut rates,” said Arora. 

US Fed Meeting LIVE: Bloomberg's US Dollar Spot Index was trading 0.24 per cent higher at 99.481 at 12:42 p.m. (EDT) ahead of the US Federal Reserve's policy announcement on Wednesday, May 7, 2025. 

US Fed Meeting LIVE: US Federal Reserve Chairman Jerome Powell, after his March 2025 policy announcement, told the media that the risk of the US economy slipping into a recession is not high enough to become a cause of concern. 

“If you go back two months, people were saying that the likelihood of a recession was extremely low,” said Powell. “It has moved up, but it's not high,” he said. 

US Fed Meeting LIVE: According to the Consumer Price Index (CPI) for the All Urban Consumers dropped 0.1 per cent in the month of March 2025, after rising 0.2 per cent in February, according to the US Bureau of Labor Statistics data released on April 10, 2025. 

“The index for all items less food and energy rose 0.1 per cent in March, following a 0.2 per cent increase in February,” according to the announcement. 

The unadjusted CPI inflation for the year ended March 2025 was at 2.4 per cent. 

US Fed Meeting LIVE: US Federal Reserve in its March 2025 policy meeting marked that they expect the US economy to grow at a slower rate of 1.7% in 2025, compared to the 2.1 per cent in 2024. 

The Fed also pegged the economic growth of the nation at 1.8 per cent in the year 2026. 

US Fed Meeting LIVE: In his Truth Social post on April 21, US President Donald Trump claimed that now is the right time for the US Federal Reserve to cut its key benchmark interest rates, citing downward cost trends. 

“With these costs trending so nicely downward, just what I predicted they would do, there can almost be no inflation, but there can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW,” said Trump in his post. 

This was Trump's most recent attempt to put pressure on US Fed Chairman Jerome Powell to consider an upcoming rate cut. 

US Fed Meeting LIVE: Abans Financial Services' FRN-VP Risk & Head Research, Mayank Mundhra, said that if the US Fed shows any dovish signs in the policy announcement, it will further reinforce the expectations of a July rate cut. He expects the interest rates to remain unchanged at 4.25% to 4.50%. 

“As the US Federal Reserve meets today, we expect it to keep interest rates unchanged in the 4.25%–4.50% range. April’s strong job growth shows some resilience, but the U.S. economy experienced a 0.3% annualized contraction in Q1 GDP, signalling a slowdown. Inflation stands at 2.6%, still above the Fed’s 2% target, and the risk of stagflation due to escalating trade tensions remains real,” said Mundhra. 

“While Trump pushes for rate cuts, the Fed is likely to remain cautious for now. However, with growth losing momentum and inflation gradually cooling, there’s a growing chance that a rate-cutting cycle could begin as early as July. Markets will be tuned into Chair Powell’s tone, as any dovish hint could reinforce expectations of a July rate cut. The Fed may hold rates steady today, but the stage looks set for policy support in the months ahead,” said the expert. 

US Fed Meeting LIVE: The US Federal Reserve is set to announce the changes in key benchmark interest rates on Wednesday, May 7, 2025, at 2 p.m. (EDT). This means for Indians it will be 11:30 p.m. (IST) on Wednesday, May 7, 2025. 

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US Fed Meeting LIVE: As of 11:36 a.m. (EDT) The Dow Jones Industrial Average is trading 0.53% higher at 41,046.89 points, compared to 40,829 points at the previous market close. 

The Nasdaq Composite Index is trading 0.44% lower at 17,612.05 points, compared to 17,689.66 points at the previous US market close. 

The S&P 500 index is trading 0.05% lower at 5,605.44 points, compared to 5,606.91 points at the previous stock market session. 

US Fed Meeting LIVE: US Federal Reserve Chairman Jerome Powell, in the March 2025 policy announcement, said that the US economy seems to be ‘healthy’ and that the Fed is prepared to be patient to see the economy evolve before making further moves. 

“We understand that sentiment has fallen off pretty sharply, but economic activity has not yet,” said Powell. ‘The economy seems to be healthy.’ He added that the uncertainty of the economic outlook is 'unusually elevated' and that the Fed is prepared to be patient and see how the economy evolves before making further moves.

US Fed Meeting LIVE: Reliance Securities' Senior Analyst Jigar Trivedi said that the markets are focused on the forward guidance and the trade-related risk on the US economy. 

“While the Fed is widely expected to hold the fund rate steady, markets will be keenly focused on the Fed’s forward guidance and its assessment of ongoing trade-related risks. Trade negotiations between the U.S. and several Asian economies are set to resume this week, though talks with China remain stalled. The prolonged uncertainty has continued to weigh on investor sentiment, reflected in a slight decline in the U.S. Dollar Index to around 99.6,” said Trivedi. 

“Fed officials have acknowledged that sustained tariffs could push inflation higher while also dampening employment. However, the extent and duration of these effects remain uncertain and will likely be a topic of interest in policy statement and press conference,” he said. 

US Fed Meeting LIVE: In the March 2025 Federal Reserve policy meeting, Jerome Powell said that he is in no hurry to cut rates, and the Fed's stance is “well-positioned” to deal with the risk and uncertainties in the economy. 

"We're not going to be in any hurry to move," said Powell. “Our current policy stance is well-positioned to deal with the risks and uncertainties we face…The right thing to do is to wait here for greater clarity about what the economy is doing.”

US Fed Meeting LIVE: US stock markets opened higher ahead of the Federal Reserve's policy announcement on Wednesday, May 7, 2025, as investors expect a de-escalation of trade tensions between China and the US, reported Reuters. 

At 9:30 a.m. (EDT), The Dow Jones Industrial Average opened 0.31% higher at 40,956.08 points, compared to 40,829.00 points at the previous stock market close. 

The S&P 500 index also opened 0.13% higher at 5,614.18 points, compared to 5,606.91 points at the previous US market close. 

The tech-heavy Nasdaq Composite opened 0.10% higher at 17,706.827 points, compared to 17,689.66 points at the previous market close. 

US Fed Meeting LIVE: US Federal Reserve's favoured inflation indicator, the Personal Consumption Expenditures (PCE) Price Index, remained unchanged in March 2025, after rising 0.4% in February 2025. 

On a year-on-year (YoY) basis, the PCE prices rose 2.3% after its 2.7% rise in February 2025, according to the official data. 

US Fed Meeting LIVE: Anand Rathi's Chief Economist and Executive Director, Sujan Hajra, said that they expect the US Federal Reserve to keep their key benchmark interest rates unchanged due to the inflationary feedback from recent US tariff hikes, persisting fiscal deficit, among other reasons. 

“We expect the US Federal Reserve to maintain a pause on policy rates. This anticipated status quo is influenced by several factors: the potential inflationary feedback from recent US tariff hikes, persistent fiscal deficits, and a still-resilient labour market. While inflation has moderated and growth forecasts have softened, the Fed is likely to adopt a cautious stance—especially amid political pressures to ease rates,” said Hajra. 

US Fed Meeting LIVE: As per the U.S. Bureau of Labor Statistics data released on May 2, 2025, the total non-farm payroll employment rose by 177,000 in April, 2025. 

The employment in health care, transportation and warehousing, financial activities, and social assistance continued to trend up, as per the data release. However, the federal government employment numbers declined in April due to the federal job cuts. 

US Fed Meeting LIVE: According to the official data, the ISM's Purchasing Managers' Index (PMI) index dropped to a five-month low of 48.7 in April from 49.0 in March. 

The PMI index shows the overall level of economic activity in the manufacturing sector of the United States, compared on a month-on-month basis. 

US Fed Meeting LIVE: The US GDP data for the first quarter of the calendar year 2025 dropped to 0.3 per cent for the first time in three months amid Donald Trump's ongoing tariff war between the United States and other nations. 

U.S. Bureau of Economic Analysis' advance estimates data shows that decrease in real GDP showed an increase in imports ahead of the reciprocal tariffs implementation. 

“The decrease in real GDP in the first quarter primarily reflected an increase in imports, which are a subtraction in the calculation of GDP, and a decrease in government spending,” said the government agency in the official release. 

The US GDP growth data dropped to its current levels from 2.4 per cent in the fourth quarter of 2024, indicating a “downturn” over rising imports. 

US Fed Meeting LIVE: Dow Jones Futures were down 0.70% or 287.83 points trading at 40,931, as of 7:09 p.m. (IST) on May 6, 2025, ahead of the Wall Street open. 

US Federal Reserve is set to announce the key benchmark interest rate update in its meeting at 2 p.m. (EDT) or 11:30 p.m. (IST) on Wednesday, May 7. 

US Fed Meeting LIVE: After the US Federal Reserve kept the key benchmark interest rate unchanged in the March 2025 policy meeting. Chairman Jerome Powell-led rate setting panel announced that they project a two quarter-percentage-point rate cuts by the end of this year. 

US Fed Meeting LIVE: The US Federal Reserve in its March 2025 monetary policy meeting kept the key benchmark interest rates unchanged at 4.25 to 4.50 per cent. 

“The committee would be prepared to adjust the stance of the monetary policy as appropriate if risks emerge that could impede the attainment of the goals,” said the FOMC committee in the official statement. 

US Fed Meeting LIVE: Investors and people in India should be prepared as US Fed Chairman Jerome Powell will announce the key benchmark interest rate decision on Wednesday, May 7, 2025, at 11:30 p.m. (IST). 

To follow the policy meeting announcements, you keep stay tuned with the blog or directly check US Federal Reserve's YouTube channel for the live telecast of the press meeting post the declaration.