With many clients curious about the recent Federal Reserve meeting, I wanted to share a quick overview of what was discussed and what it might mean for you.

Here’s a breakdown of the key takeaways from the May 2025 Federal Open Market Committee meeting:

1. Interest rates remain unchanged

The Fed left the federal funds rate at 4.25%–4.5%. This marks the third consecutive meeting with no change, reflecting a continued “wait-and-see” approach.

2. Why no rate cuts (yet)?

Currently, inflation remains elevated, though it has eased, and the labor market appears strong. However, Fed officials noted growing uncertainty in the economy. With new tariffs now in effect — and additional ones under discussion — the Fed is opting to pause before making any further moves, as the long-term impact on inflation and employment remains unclear.

3. Powell’s message: Patience and data

Federal Reserve Chair Jerome Powell emphasized the importance of waiting for clearer data. The Fed is closely monitoring how tariffs will impact inflation and employment before deciding if or when to adjust interest rates.

4. Stagflation is a concern, but not a certainty

Stagflation refers to the combination of slow economic growth, high inflation, and rising unemployment. While the economy is still showing signs of resilience, the Fed is monitoring whether prolonged inflation and evolving job market conditions could create a more concerning picture.

5. What does this mean for Americans?

Here are a few practical points to consider:

• Borrowing costs have eased somewhat from last year’s highs, but they remain elevated and are unlikely to decrease further in the short term.
• Emergency savings, regardless of market trends, can potentially provide a cushion to help you stay financially resilient.
• Market volatility may persist as the Fed and investors await clearer signals.
• Recession odds have ticked higher, but no definitive downturn is underway.
• Long-term planning may be helpful — staying invested and not overreacting to headlines can help weather uncertain times.

If this raises any questions or if you’d like to talk through how these developments could affect your financial strategy, please don’t hesitate to reach out. I’m here for you.

Thank you for reading!

Joe Ezernack

This material is intended for informational purposes only and should not be construed as legal, accounting, tax, investment, or other professional advice. Trademark Capital’s investment strategies are built using quantitative, proprietary algorithms that are designed to identify and react to changing market conditions. However, investors should be aware that no investment strategy or risk management technique can guarantee returns or eliminate risk in any given market environment. As with all investments, Trademark Capital Management’s investment strategies are subject to risk and may lose money. The investment strategies presented are not appropriate for every investor and individual clients should review with their financial advisors the terms and conditions and risk involved with specific products or services. Due to our active risk management, our managed portfolios may underperform during bull markets. Past performance is no guarantee of future results.