For the third time in a row, the U.S. Federal Reserve keeps interest rates unchanged

For the third consecutive time, the U.S. Federal Reserve decided on Wednesday, May 7, to keep interest rates unchanged at a range between 4.25% and 4.5%, in line with expectations.

This decision followed the Fed’s third monetary policy meeting of 2025, held over Tuesday and Wednesday, to discuss the future path of interest rates.

The Federal Reserve had cut interest rates three times in 2024, totaling a reduction of 1%.

The May meeting came after data released last week showed inflation slowed more than expected in March, falling to 2.4%. Meanwhile, other economic data indicated that the U.S. economy contracted by 0.3% in the first quarter of this year.

The U.S. economy added 177,000 jobs last month, surpassing expectations of 133,000 but down from a revised figure of 185,000 in March, according to data released by the U.S. Department of Labor.