The Federal Reserve is widely expected to maintain its benchmark interest rate at the current range of 4.25% to 4.5% during its upcoming meeting on May 7, 2025. This decision comes amidst a complex economic landscape marked by mixed signals.

Despite President Trump's calls for immediate rate cuts to stimulate growth, the Fed is adopting a cautious "wait-and-see" approach. Chair Jerome Powell has emphasized the need for more concrete data before making policy adjustments, particularly in light of the potential inflationary effects of new tariffs.