FOMC RATE DECISION: FED HOLDS FIRM — HAWKISH PAUSE CONFIRMED 🦅
After three straight rate cuts, the Federal Reserve has officially paused. While markets largely priced this in, the tone of the statement raised eyebrows.
• The Fed sees the job market stabilizing
• Inflation remains stubbornly elevated
• Economic uncertainty is rising rapidly
Most importantly, the Fed reaffirmed its 2% inflation target — and made it clear they’re nowhere close to victory. There’s no signal of near-term easing.
Layer on Trump’s renewed tariff threats, a weakening DXY, aggressive bond selling, and growing government shutdown risks — and macro uncertainty is surging.
Powell’s press conference is up next, but the direction is already clear:
The Fed is not bowing to easing pressure. “Higher for longer” remains the base case.
Markets are on edge.