Fed Keeps Rates Unchanged, But Keeps Two Cuts In Sight For 2025

Published 18-06-2025, 11:48 pm
Updated 19-06-2025, 12:15 am
© Reuters.  Fed Keeps Rates Unchanged, But Keeps Two Cuts In Sight For 2025

Stocktwits - The Federal Reserve on Wednesday kept the key borrowing rates unchanged, maintaining them in the 4.25% to 4.5% range, in line with market expectations.

The Federal Open Market Committee (FOMC), led by Jerome Powell, said it still expects two rate cuts in 2025.

The FOMC noted that uncertainty surrounding the economic outlook has remained elevated, although it has diminished from its previous forecast.

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

Following the Federal Reserve’s decision, benchmark indices continued to trade in the green.

At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was up 0.21%, while the Invesco QQQ Trust (QQQ) gained 0.14%.

According to the dot plot rate projections, 12 of the 19 policymakers expect the central bank to cut rates by 50 basis points in 2025, which would translate into two quarter-point rate reductions this year. Previously, 11 officials had factored in at least two rate cuts.

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