#FOMCMeeting The FOMC meeting has concluded, and the Federal Reserve has decided to hold interest rates steady at 4.25%-4.50%. This decision was widely expected, but the market is now focused on Fed Chair Jerome Powell's remarks for clues on future monetary policy.
*Key Takeaways:*
- *Interest Rates:* No change in interest rates, maintaining the current range of 4.25%-4.50%.
- *Powell's Remarks:* Powell's tone was cautiously watchful, citing ongoing uncertainty around Trump's proposed tariffs and persistent inflation pressures.
- *Market Reaction:* Risk assets, including crypto, reacted with some hesitation, while gold and S&P futures edged slightly lower.
*Market Impact:*
- *Volatility:* Expect high volatility in the crypto market, with potential sharp moves across Bitcoin, Ethereum, and altcoins.
- *Rate Cuts:* Markets have pushed back expectations for rate cuts to at least June, with some economists predicting no cuts until December.
*Trading Strategies:*
- *Tight Stop-Losses:* Use tight stop-losses to manage risk, as liquidity storms are likely.
- *Wait for Confirmation:* Wait 30 minutes post-announcement before entering trades to avoid getting caught in volatility.
- *Monitor Powell's Tone:* Pay attention to Powell's tone and language, as it may signal future policy shifts ¹ ².