Ecb slashes rates again—while the Fed stands frozen

On June 5, 2025, the European Central Bank announced a reduction in its key interest rate from 2.25% to 2.0%. This helps alleviate borrowing costs in the eurozone, responding to economic pressures including cooling inflation and sluggish growth.

The U.S. Federal Reserve remains unchanged in its current interest rate, expected to stay within the 4.25% to 4.50% range. Prediction markets indicate a 97% probability that the Fed will not adjust rates, asserting strong confidence in maintaining stability amid external pressures.