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Macro · Jun 18, 2025

Fed Holds Rates Steady, Signals Two Cuts in 2025

The FOMC left the federal funds rate unchanged at 5.25-5.50% and signaled two quarter-point cuts later this year.

The Federal Reserve kept its benchmark rate unchanged and indicated that two quarter-point cuts remain on the table for the remainder of 2025, slightly more dovish than markets had priced. Chair Jerome Powell emphasized that further progress on inflation would be needed before easing, while noting that the labor market has cooled to a level consistent with the soft-landing thesis.

The dot plot median now shows two cuts in 2025, down from three at the March meeting, and the 2026 median was trimmed to three cuts. Equities rose on the decision, while the 2-year yield slipped 6bps to 4.71%.

Not financial advice
This article is reported for educational purposes only. It is not a recommendation to buy, sell, or hold any security. Markets carry risk — you can lose money. Do your own research and consult a licensed professional before acting.
Not financial advice
All content on TrendForge is for educational and informational purposes only. Nothing here is a recommendation, solicitation, or personalized financial advice. Markets carry risk — you can lose money. Do your own research and consult a licensed professional before acting.