The Federal Open Market Committee (FOMC) meets regularly to set U.S. monetary policy, with decisions that impact interest rates, inflation, and economic growth. In the June 2025 meeting, the FOMC held interest rates steady at 4.25–4.50% amid geopolitical tensions and uncertain tariff impacts. The Fed acknowledged easing inflation but remained cautious due to ongoing risks. Updated projections suggest fewer rate cuts in 2025, with the first possible adjustment expected in September. Fed Chair Jerome Powell emphasized a data-driven approach, highlighting that future decisions will depend on evolving economic indicators, labor market strength, and global developments influencing U.S. financial stability.