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2 May 2025

International Economy

FOMC meeting, May 6-7: Fed expected to hold its policy rate steady amid high uncertainty over US tariff hikes (Business Brief No.4151 Full Ed.)

คะแนนเฉลี่ย
  • At the FOMC meeting slated for May 6-7, 2025 – the third of eight scheduled meetings this year – the US Federal Reserve (Fed) is expected to maintain its policy rate at 4.25–4.50 percent, the same level held since the beginning of the year. This is to allow time to assess potential impacts of US tariff hikes, which remain highly uncertain.
  • KResearch anticipates that the Fed will cut the policy rate three times in the second half of this year, as the US economy is likely to slow significantly due to the more pronounced impacts of reciprocal tariffs after the temporary pause in tariff hikes ends.
  • Preliminary data shows that US GDP contracted by 0.3 percent in 1Q25 (annualized %QoQ, seasonally adjusted), reflecting the fragility of the economy, which may enter a technical recession this year. This risk may heighten if the effects of tariff hikes prove severe, which could significantly weigh on the labor market going forward.

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International Economy

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