#FedHODL refers to a scenario where the U.S. Federal Reserve (Fed) maintains high interest rates for an extended period, similar to the "HODL" (Hold On for Dear Life) strategy in crypto investing. This approach suggests that the Fed is unwilling to cut rates despite economic slowdowns, prioritizing inflation control over market concerns.

The impact of includes prolonged high borrowing costs, potential stock market volatility, and slower economic growth. Investors adjust portfolios, favoring fixed-income assets over equities. Cryptocurrencies and risk assets often suffer due to reduced liquidity.

If the Fed eventually pivots, markets may see a surge. Until then, it keeps uncertainty alive, making patience and risk management crucial for investors navigating this high-rate environment.