The Federal Open Market Committee (FOMC) is meeting once again this week to assess the health of the economy and potentially adjust the federal funds rate .
After a series of interest rate hikes between March 2022 and July 2023, the Fed held its benchmark rate steady for over a year. However, in September 2024, the Fed announced a 50 basis point rate cut. It cut its target rate by another 25 bps in November, and again in December. The Fed has since held its target range steady at 4.25%-4.50%.
When is the next Fed meeting?
The next FOMC meeting is set to take place on May 6-7, 2025. This will be its third scheduled meeting this year; the Fed has five more meetings on the schedule for the remainder of 2025.
Once the meeting concludes, the FOMC will release its policy decisions at 2 p.m. Eastern time. Then the Fed chairman will hold a news conference at 2:30 p.m.
The live news conferences held by Federal Reserve Chairman Jerome Powell are livestreamed and recorded. Additionally, the minutes of regularly scheduled meetings are released three weeks after the date of the policy decision.
Knowing when the Fed meets to discuss monetary policy and tuning into those meetings can help you gain a better understanding of how the economy is doing and help you make more informed decisions about your personal finances.
What will happen at the next Fed meeting?
The Fed is expected to once again hold the federal funds rate steady this week. In its last meeting, the Fed noted that “recent indicators suggest that economic activity has continued to expand at a solid pace. The unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid.” However, it also maintained that inflation remains somewhat elevated and uncertainty around the economic outlook has increased.
Experts believe that the Fed will reduce the federal funds rate again in 2025. However, it’s impossible to predict exactly when the Fed will make these cuts and by how much.
Even so, it doesn’t hurt to be prepared. Ahead of future Fed meetings — and possible rate cuts — consider taking the following steps to shore up your finances:
Read more: A look at the federal funds rate over the past 50 years: How has it changed?
