From CNBC: 2025-05-06 15:03:00

Federal Reserve Chair Jerome Powell is in a tough spot as the Fed meets with little forecasted action. Markets expect no rate cuts this week and only a 1-in-3 chance in June due to economic uncertainty and shifting trade policies by President Trump. Powell will face questioning on data indicating mixed economic signals and tariffs impacting inflation. The Fed is expected to maintain a patient approach with potentially two rate cuts this year. Powell and Co. must navigate a challenging economic landscape at least until the June meeting, with no “dot plot” projections this time. The Fed is aiming to wait for more data before making any moves, potentially cutting rates in July, September, and October to address economic weakness. Despite pressure from Trump to cut rates, the Fed is expected to remain united and focused on economic stability.

Read more: The Fed meets with uncertainty permeating the air. Here’s what to expect