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Fed Continues Rate Hold Amid Rising Manufacturing Technology Demand

May 07, 2025

McLean, Va. (May 7, 2025) — Today, the Federal Reserve held the federal funds rate steady at a target range of 4.25% to 4.5% for the third meeting in a row. In its announcement of the rate decision, the Fed cited increasing uncertainty in the economic outlook and a rising risk of higher unemployment and inflation.

“The market for manufacturing technology had a great first quarter, and despite the rising risks to inflation and unemployment cited by the Fed, the economy remains on generally stable footing,” said Christopher Chidzik, principal economist of AMT – The Association For Manufacturing Technology. “Uncertainty is detrimental to consumers making large purchases and businesses making additional investment. The sooner policy paths are solidified, the sooner businesses can make additional investments in manufacturing technology to meet consumer demand.”

To learn how rising uncertainty could affect the market for manufacturing technology through the remainder of 2025, attend AMT's 2025 Spring Economic Update Webinar on Thursday, May 8.

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Members of AMT – The Association For Manufacturing Technology build and sell metalworking machinery, commonly known as machine tools, as well as the workholding, tooling, inspection equipment, and automation integral to modern manufacturing.

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Kristin Bartschi
Director, Marketing & Communications
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