FEDERAL_RESERVE has once again held interest rates at 3.50%–3.75% in its most recent policy meeting, signaling a strategic pause amid mixed macro signals. While headline inflation eased below expectations — strengthening rate-cut expectations later in the year — core price pressures remain under watch.
Market reaction shows cautious optimism: futures traders are now pricing in a higher probability of a June 2026 rate cut, but the Fed’s cautious stance suggests they are watching inflation and labor data closely before making any move.
From a market perspective, this means liquidity conditions are not tightening further, but neither are they loosening yet. For crypto markets, this creates an environment where risk assets can rally on easing expectations — but only after clear signals emerge from macro data.
Does this Fed pause mark the end of tightening… or just a waiting game before easing?
$BTC $ETH $BNB #FedDecision #Macro #InflationImpact #Liquidity #CPIWatch _________________________________
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