The US Central Bank Kept Its Interest Rates Unchanged for the Fourth Consecurable Policy Announcement Since January 2025. The US Fed has Fed has Maintened Its Policy Policy Ever Since President Donaldent Donaldent Donaldent Donaldent DonalD White House Comeback for a Second Term in 2025.
The projections from the fed’s Quarterly ‘Dot Plot’ release showed that officials are expecting a 50 basis points or 0.5% interest rate cut in 2025. This chart Holds Data on Each Federal ‘ Expectations for where interest rates will head in the future.
Us Fed Meeting | 5 key highlights
Rates remain unchanged
The US Benchmark Interest Rates were kept unchanged at the range of 4.25% to 4.5%, according to the federal reserve’s fomc meeting Verdict released on Wednesday, 18 June 2025.
The US Central Bank Cited Concerns of Economic Uncertainty in the Nation as the Reason Behind Holding The Interest Rates for the fourth Consective time this year. This announsement also projectioned a hawkish policy where the risk of higher upcoming inflation looms over the us economy.
“In support of its goals, the committee decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 per cent,” said the fomc in its official statement. “The unemployment rate remain low, and labor market conditions remain solid. Inflation remains somewhat elevated.”
Elevated Economic Uncertainty
The us fed’s fomc, in the official statement, and Chairman Jerome Powell, during the Press Conference, BOTH addressed the elevated economic uncertain in the united statements due to the fact of the tariffs Us President Donald Trump.
However, the committee and power bot agreed that the uncertaintes have diminished from their earlier levels, Yet they remain elevated in the current market. “Uncertainty about the economy outlook has diminished but remains elevated,” said the us fed fomc in the statement.
Fed Chairman Powell also said that the uncertainty due to the trump tarifs peaked in April 2025, and since then, it has been coming down over the months.
“Uncertainty peaked in April and Since then has come down…” said jerome power in the press conference.
Us Inflation Risk
The us fed also flagged an inflation risk in the nation’s economy at a somewhat ‘elevated level,’ Despite the Lower Unemployment Rates and Resilient Labor Market.
“Although Swings in Net Exports Have Affected The Data, Recent Indicators Sugges That Economic Activity Has Continued to Expand at a Solid Pace. The Unemployment Rate Remains Low, Labor MARKET CONDIONS LOW Remain Solid. Inflation Remains Somewhat Elevated, “According to the Fomc’s Official Statement.
Powell in the press conference also highlighted that goods inflation readings will show 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 Do Expect, to See More of that Over the Over the course of the summer,” called Jerome Powell in the presferee
Fall of Labor Demand & Supply in Us Economy
Powell, in his media address, highlighted how the us economy is witnessing a fall in bot labore demand and supply. The fed chair also highlighted that labore demand is softening, while labore supply is Diminishing because of the Falling Immigration Numbers.
“What you see is an unnemploment rate that has been really solid and at a low, low level, not really increasing. It’s been in a good range, and well with rage of mainstreams of mainstreams of mainstone. That means, part of that is that labor demand and labor supply area of moving down at the same rate, “said power in the press conference.
“You’re right that the level of job creation has come down, but so have the supply of works, the new supply. So you’ve seen the Unempolyment rate remain pretty stable at 4.2%, 4.3%, IT ‘ But thats are good numbers, “said power, highlighting the job Concerns in the US Economy.
On us layoffs, power commented that at the current market, there are very people who are gotting laid off from their jobs, and that is bringing an “Equilibrium” in the Job Market, Controlling the use Rates.
“If you’re out of work, it’s hard to find a job, but there are very few people being with laid off at this point. So that’s an equilibrium,” Powell Said.
How did Markets React to Fed’s Policy Hold?
The us stock markets fell after jerome power power started his press conference after the federal reserve
At 2:40 PM (EDT), The Dow Jones Industrial Average Dropped Nearly 260 Points, OR 0.61%, to 42,159 points intraday on wedding on wedding, 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 138 points or 0.70% intraday to 19,503.68 points, compared to its ear-day levels of 19,641.62 points, Acording to MARKERDING to MARKETWATH Data. The index was trading 0.34% Higher towards the end of Wednsday’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.
The bloomberg us dollar spot index rose 0.12% to 98.929 as of 3:41 PM (EDT) on Wednsday, 18 June 2025, after the US Fed’s Policy Announcement.
Read all us federal reserve-related news here
Read all stories by Anubhav mukherjee
Disclaimer: This story is for educational purposes only. The views and recommendations about individual analysts or broking companies, not mint. We Advise Investors to Check With Certified Experts Before Making Any Investments Decisions.
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