The Fed opted to maintain its current interest rate range of 4.25-4.5% during its quarterly meeting on May 7, 2025. The decision follows a series of rate cuts, with the last reduction occurring in December 2024, totaling a decrease of 25 basis points. This marked the third consecutive rate cut, and analysts speculate on the possibility of further cuts later in the year. However, the Fed’s decision-making could be influenced by ongoing challenges such as persistent inflationary pressures and emerging tariff impacts.

Relevant Sources:
Fed Reserve Broadcast: federalreserve.gov