Market Tour Guide: FOMC Keeps Interest Rates Unchanged, Fed Continues Conservative Strategy

Let’s take a tour with you through the recently announced decision of the FOMC – a significant milestone in U.S. monetary policy. The Fed has paused its sequence of three consecutive interest rate cuts, and although the market anticipated this move, the new messages from the agency are truly worth a detailed analysis.

Policy Tourguide: Three Key Signals from the Fed Decision

When examining the detailed Fed statement, three prominent factors are clear:

First is a stable labor market condition. The employment market no longer exerts pressure on the Fed to cut rates in the near term. This fundamentally reduces the incentive for immediate policy adjustments.

Second, inflation remains above the target level. The Fed is still not comfortable with this situation, fearing that the 2% inflation goal has not been sufficiently achieved. These concerns continue to limit the possibility of easing policies.

Third is widespread uncertainty and instability in the macroeconomy. The Fed is maintaining a cautious stance, with no plans for immediate easing. Instead, they continue to observe and wait for clearer signals from the market.

Market Map: Inflation, Employment, and Uncertainty Factors

The tour guide shows that rate cuts will not happen “soon” unless an extraordinary event disrupts the market or the economy. The current macro factors paint a complex picture:

The new tariff policies of President Trump are causing unwanted volatility. The dollar index (DXY) shows signs of weakness, while the bond market is experiencing sell-offs, pushing yields higher and increasing risks accordingly. Additionally, the threat of a government shutdown remains an underlying risk, adding more uncertainty to all markets.

Trading Guide: Crypto Assets in a Tightening Monetary Policy Context

As the Fed maintains a cautious stance, crypto assets become more sensitive than ever. Recent data shows:

Bitcoin (BTC): Trading around $72.58K with a 4.14% decline in 24 hours. Tight monetary policy pressures continue to influence investor sentiment.

Ethereum (ETH): Currently at $2.12K, down 5.16% over 24 hours. Altcoins like SOL are also affected by shifting capital flows.

Our tour guide indicates that as the Fed continues its conservative strategy, crypto traders should prepare for ongoing volatility. The upcoming speech by Jerome Powell will be a key milestone to watch – this could be the next trigger with a significant impact on the market.

Looking Ahead: When Market Tourguides Lead You into Turbulent Times

It’s clear that the Fed will not shift to easing mode anytime soon. Volatility will remain high, and markets, especially risky assets like cryptocurrencies, will continue to face pressure.

Our market tour guide emphasizes that with this decision, we are entering a new phase where investors need to be more cautious. Will the Fed maintain its cautious stance long-term, or will market forces force a change? That question will be answered through upcoming policy decisions and market reactions in the coming weeks.