FOMC RATE DECISION: FED HOLDS — HAWKISH PAUSE CONFIRMED
After three straight rate cuts, the Federal Reserve has hit pause. Markets largely expected it, but the tone of the statement raised fresh concerns: the labor market is stabilizing, inflation remains stubbornly high, and economic uncertainty is accelerating.
The Fed reiterated its firm commitment to the 2% inflation target — a goal still clearly out of reach. There was no hint of further easing anytime soon.
Layer in Trump’s renewed tariff threats, a weakening DXY, aggressive bond selling, and rising government shutdown risks, and uncertainty is rapidly intensifying.
Powell’s press conference is up next, but the message so far is unmistakable: the Fed is not pivoting.
Higher for longer remains the baseline.
Markets are on edge.