As of June 19, 2025, The Federal Reserve (FED) announced its latest monetary policy stance. In this interest rate decision meeting, the FED decided to maintain the federal funds rate in the target range of 4.25%-4.50%, marking the fourth consecutive time that the rate has remained unchanged, in line with market expectations.

The latest dot plot released by The Federal Reserve (FED) shows that central bank officials still expect to implement two rate cuts in 2025, which is consistent with the forecast made in March this year. The meeting minutes further revealed that officials anticipate a total reduction of 50 basis points in 2025, but the expectations for the rate cut in 2026 have been downgraded to only 25 basis points.

At the press conference following the policy statement, Federal Reserve Chairman Powell pointed out that the U.S. economy continues to maintain a robust expansion trend, but inflation expectations have been raised to 3%. He emphasized that in the future, the Federal Reserve will closely monitor changes in economic data and flexibly adjust its monetary policy stance based on uncertainty factors.

Overall, although the Federal Reserve maintained the current interest rate level, the policy statement released signals a possible future rate cut. The financial markets reacted relatively calmly to this, indicating that investors have anticipated this policy path.