Data compiled by Woofun AI shows that the Federal Reserve maintained the federal funds rate target range at 3.50% to 3.75% during its first FOMC meeting under Chair Powell. The unanimous decision masked a significant shift in policy outlook, as nine of the eighteen voting officials now project at least one additional rate hike this year. Consequently, the median federal funds rate forecast for the end of 2026 rose from 3.4% to 3.8%, while PCE inflation expectations were raised to 3.6%, signaling a renewed prioritization of price stability.

Powell emphasized a data-dependent approach, noting that traditional forward guidance may be less effective in the current environment. He announced the formation of five working groups to review communication strategies and the inflation framework. Market participants reacted swiftly to this hawkish tilt, with the probability of a rate hike jumping from 60% to over 80%. Equity markets declined, with the S&P 500 dropping 1.2% and the Nasdaq falling 1.3%.

Concurrently, the US dollar strengthened, pushing the DXY to multi-month highs, while Bitcoin retreated below $64,000 amid tightening liquidity expectations.