Markets Pull Back as Investors Await Fed Decision
After a brief period of optimism, risk assets reversed course on Tuesday ahead of the Federal Reserve’s policy announcement.
Bitcoin (BTC) slipped 3.5% in the past 24 hours, trading at $81,300, while Solana (SOL), Ethereum (ETH), and XRP saw slightly steeper declines.
Equities also struggled, with the Nasdaq dropping 1.7% and the S&P 500 losing 1.1% as the trading day neared its close.
The Federal Open Market Committee (FOMC) kicked off its two-day meeting today, with Fed Chair Jerome Powell set to deliver his post-meeting remarks on Wednesday. While the central bank is not expected to adjust interest rates, investors are looking for any signs of a shift toward a more dovish stance amid market volatility and slowing inflation.
Tuesday’s retreat signals uncertainty about whether the Fed is prepared to ease monetary policy. The latest inflation data showed some cooling, but one report may not be enough to sway policymakers.
According to CME FedWatch, traders currently assign a 0% probability of a rate cut at this meeting, a 20% chance in May, and a 66% likelihood by June.
