In the global markets, following the recent tariff move by the US administration against China, all eyes are now on the interest rate decision. The US Federal Reserve (FED) had previously kept the policy interest rate unchanged at a range of 4.25-4.50 percent. This talked-about decision was taken by 11 votes to 1. Those closely following the economic agenda are now focusing on the new interest rate decision. So, when will the FED interest rate decision be announced?

According to the decision announced by the US Federal Reserve (FED) at the March meeting, they did not make any changes to the policy interest rate, keeping it stable at a level of 4.25-4.50 percent. According to the schedule of the Monetary Policy Committee, there will be no meeting in April.

The US Federal Reserve interest rate decision will be announced on May 7th at 22:00 after the meeting to be held on May 6-7. Fed also announced its forecasts for the economy, keeping the estimate for the federal funds rate at 3.9 percent at the end of this year, the same as in December last year. Fed left its 2026 and 2027 estimates for the federal funds rate and the long-term average interest rate expectation at 3.4 percent, 3.1 percent, and 3 percent respectively. The forecasts indicated that Fed continues to predict 2 interest rate cuts in 2025.

The Bank’s inflation forecasts were increased from 2.5 percent to 2.7 percent for this year, from 2.1 percent to 2.2 percent for 2026, while remaining at 2 percent for 2027. Forecasts for core inflation, excluding volatile energy and food prices, were revised from 2.5 percent to 2.8 percent for this year, while kept at 2.2 percent for 2026 and 2 percent for 2027.

The growth forecast for the US economy was lowered from 2.1 percent to 1.7 percent for this year, from 2 percent to 1.8 percent for next year, and from 1.9 percent to 1.8 percent for 2027. Unemployment rate estimates remained at 4.3 percent for this year, next year, and 2027.