Fed Holds Policy Steady, Expresses Caution on September Rate Cut

The Federal Reserve has decided to keep interest rates unchanged, citing concerns about elevated inflation and uncertainty in the economic outlook. Despite expectations of a rate cut, Fed Chair Powell stated that no decisions have been made.

The central bank remains cautious about easing policy, given that inflation is still above its target of 2%. The decision led to a rise in bond yields and the dollar, while bitcoin experienced a slight decline.

U.S. stocks, on the other hand, rallied. Looking ahead, markets are anticipating a potential rate cut by the end of the year, with a near-60% chance of 75 basis points in rate cuts by December.

Furthermore, investors are closely watching for hints from the Fed about future rate changes and its confidence in inflation data. Overall, the central bank's decision reflects a more cautious stance on monetary policy.