24/7 Cryptocurrency News

FOMC Meeting: Will Jerome Powell & The FED Cut Interest Rates On May 7th?

Published by

The crypto community has its eyes on the next FOMC meeting holding in May, with discussions on whether Jerome Powell and the Fed will cut interest rates. However, traders are betting against this happening and instead, expect the US Central Bank to hold rates steady despite calls from US President Donald Trump.

Advertisement

Will The Fed Cut Rates Following The May FOMC Meeting?

CME FedWatch data shows there is only a 9% probability of the Fed cutting interest rates to between 400 and 425 basis points (bps) following the FOMC meeting, which will take place between May 6 and 7. Meanwhile, there is a 91% chance that the Fed will keep rates steady between 425 and 450 bps.

Polymarket traders are also betting on the Fed keeping interest rates steady. Data from the prediction platform shows that there is a 90% chance that the interest rates will remain unchanged following the May meeting. There is a 9% and 1.2% chance that the FOMC will cut rates by 25 basis points and 50 basis points, respectively.

It is worth mentioning that Bank of America earlier this month predicted that there would be four Fed rate cuts this year. They expect the first rate cut to come in May, with the others coming in July, September, and December.

However, it is understandable why traders are betting against a rate cut happening at the next FOMC meeting. In a recent speech, Fed Chair Jerome Powell suggested that they have no intention to cut rates until they determine the extent to which Trump’s tariffs could impact the economy.

In his speech, Powell also suggested that the tariffs will likely lead to higher inflation, which is why they are cautious about rushing to ease monetary policy.

Meanwhile, US President Donald Trump has insisted that this is the right time for Powell and the Fed to cut interest rates. Trump warned of a slowdown in the US economy if Powell and his committee refuse to cut rates.

Advertisement

Why The Fed Is Unlikely To Cut Rates

In an X post, market expert Kevin Green stated that prices are up, new orders are down, and general activity is cratering, which is why the Fed is unlikely to cut interest rates at the May FOMC meeting.

He remarked that the US Central Bank isn’t cutting rates without a significant crack in the labor market. The expert also suggested that the Fed is unlikely to cut rates at the June FOMC meeting, stating that time is running out for the datapoint to justify a June cut.

Market participants will have their eyes on the US GDP and PCE inflation reports, which will be released on April 30. These data could impact the odds of the Fed’s decision at the May meeting.

While a rate cut looks unlikely at the moment, a potential cut would undoubtedly be bullish for the Bitcoin price and the broader crypto market. The easing of monetary policy leads to more injection of capital into these risk assets.

Advertisement

Share
Boluwatife Adeyemi

Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across several niches. His speed and alacrity in covering breaking updates are second to none. He has a knack for simplifying the most technical concepts and making them easy for crypto newbies to understand. Boluwatife is also a lawyer, who holds a law degree from the University of Ibadan. He also holds a certification in Digital Marketing. Away from writing, he is an avid basketball lover, a traveler, and a part-time degen.

Published by

Recent Posts

  • Bitcoin News

Is the Bitcoin Top In? Raoul Pal Signals Higher Liquidity Cycle Despite Market Selloff

Raoul Pal, the founder of Real Vision, has reaffirmed his bullish stance on the crypto…

October 11, 2025
  • 24/7 Cryptocurrency News

XRP ETF Issuers File Major Amendments Even as U.S. Government Shutdown Delays Approval

XRP ETF issuers have filed amendments for their respective registration statements, providing optimism even as…

October 11, 2025
  • 24/7 Cryptocurrency News

Hyperliquid DEX Outperforms Top Crypto Exchanges Coinbase, Binance, Robinhood With Zero Downtime

Today's crypto market crash triggered major congestion at some of the top centralized exchanges like…

October 11, 2025
  • 24/7 Cryptocurrency News

Crypto Market Loses $670 Billion on CEX Auto Liquidations As Altcoins Crash Intensifies

The crypto market has witnessed the biggest single-day crash in history, with more than $19…

October 11, 2025
  • 24/7 Cryptocurrency News

Crypto Market Crash With 100% Trump Tariff Announcement on China

The crypto market is facing further declines following President Donald Trump’s announcement of a 100%…

October 11, 2025
  • 24/7 Cryptocurrency News

ASTER Airdrop Delayed to October 20 Amid Criticisms Over Token Allocations

Following complaints of consistency issues with the ASTER token airdrop, Aster DEX has announced a…

October 11, 2025