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The Market Can Breathe: Post-FOMC Calm After Rates Held Steady

What Next Post Fed Rate Held On Wednesday 



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Markets exhaled in unison Wednesday as the Federal Reserve concluded its latest policy meeting with a collective “no change” to interest rates. After weeks of speculation, jawboning from Fed officials, and eye-watering CPI numbers, the Fed chose to keep its benchmark interest rate parked at 4.25%–4.5%, for the third straight time.


And just like that—the financial world got a moment to breathe.


Why It Matters


Let’s be honest: the Fed hasn’t exactly been a source of chill lately. Traders, investors, and analysts have all been playing Fed-whisperer, trying to predict what comes next. But this time, Jerome Powell and the crew opted for a steady hand.


This rate hold signals two major things:


1. The Fed sees progress on inflation, but not enough to relax fully.



2. They’re buying time. Waiting for more economic data to shape the path forward, instead of front-running inflation or growth concerns.




The Calm Before the Data Storm?


Now that the Fed has stepped aside—for now—the spotlight shifts back to data. CPI, PCE, NFP, and consumer sentiment will steer the next moves. Think of this as the eye of the storm: a brief moment of clarity before new numbers shake the markets again.


But for traders, this pause means a lot:


Volatility may settle temporarily, which is gold for recalibrating your positions.


The U.S. dollar found strength, but now it’s all about follow-through.


Equities got a relief rally, suggesting investor sentiment isn't as fragile as it seemed.



Technical Snapshot: USDollar Inches Toward Breakout









Just look at the USDollar H4 chart—we’re sitting right below the critical 100.190 resistance. Price action since the rate decision shows bullish pressure building, but no confirmed breakout just yet. The market seems to be holding its breath again, this time waiting for a technical catalyst.


A clean break above 100.190? That’s your green light for bullish continuation.

A rejection? We could see a dip back to the 99.590 area for a retest.


Forex Takeaways


No cut doesn’t mean no action—Powell made it clear the Fed isn’t ruling anything out.


USD strength is still narrative-driven, but this consolidation phase is ideal for spotting low-risk trade setups.


Risk sentiment improved post-meeting, but that could shift quickly with new economic data.



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The Market Breathes, But Don’t Sleep


The Fed gave the market what it wanted: no surprises. But don’t mistake calm for inactivity. Rates are unchanged, yes—but everything else is still moving. As a trader, this is the time to get sharp, not lazy.


Because once the next inflation print drops, it’s game on again.


Trading is risky⚠️

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