Scheduled Date of the Upcoming Federal Reserve Meeting
The Federal Open Market Committee (FOMC) is set to hold its remaining three meetings for the year 2025, scheduled for mid-September, late October, and early December. These meetings, each lasting two days, will conclude with policy announcements at 2 pm Eastern Time and a subsequent press conference by the Fed Chair.
The September meeting is currently the betting favorite for a potential interest rate cut, with a 58% chance of a quarter-point cut expected. This comes after the FOMC cut the short-term federal funds rate by 25 basis points (bps) in November and December of 2024.
The question now centres on what the Fed will do this year and beyond. The labor market remains healthy despite job growth slowing, and the June Consumer Price Index (CPI) report showed that tariffs are having a marginal impact on inflation. However, President Donald Trump's tariff policies could potentially resurface inflationary pressures.
Steve Rick, chief economist at TruStage, believes it's too soon to make a meaningful decision about interest rate cuts due to ongoing trade negotiations and the threat of tariffs. Steve Dean, chief investment officer at Compound Planning, suggests businesses may respond to tariffs by raising prices or eating the added costs.
The FOMC meeting schedule for the remainder of 2025 includes:
- September 16–17, 2025
- October 28–29, 2025
- December 9–10, 2025
The convention of meeting eight times per year dates back to the market stresses of 1981, when the U.S. economy experienced the worst inflation in 40 years. The FOMC is required to meet at least four times a year and may convene additional meetings if necessary.
As of July 22, interest rate traders have assigned a 95% probability to the FOMC keeping the short-term federal funds rate at a target range of 4.25% to 4.50%. The next FOMC meeting will begin on Tuesday, July 29, and conclude with a policy statement on Wednesday, July 30, at 2 pm Eastern.
The Fed chief then holds a press conference at 2:30 pm, which is closely scrutinized by market participants. The Fed maintains a convention of meeting about every six weeks, with at least four meetings required annually. The September, June, March, and December meetings typically include economic projections that can more strongly influence market expectations.
No additional emergency meetings have been announced for 2025 as of August 21, but the Fed may call unscheduled meetings if necessary due to urgent economic conditions. The FOMC's decisions will undoubtedly have a significant impact on the U.S. economy and global financial markets.
[1] Federal Reserve, "FOMC Meeting Dates and Deadlines for 2025" [2] Federal Reserve, "FOMC Meeting Schedule"
- The September meeting, as indicated by Steve Rick, chief economist at TruStage, could potentially see trading activities influenced by a potential interest rate cut, given the ongoing trade negotiations and the threat of tariffs in the finance sector.
- As the business world contemplates the impact of tariffs, Steve Dean, chief investment officer at Compound Planning, suggests that businesses may adjust their strategies by either raising prices or absorbing the additional costs, thus influencing the overall market dynamics.
