The Fed decision emphasized uncertainty in the outlook in light of fights over US tariffs and fiscal policy. Expect Powell to be quizzed about that extensively at the 2:30 pm ET press conference.
For now, the market is likely focusing on downgraded growth forecasts with the median falling to 1.7% this year from 2.1% and 1.8% next year from 2.0%. Looking at the range of estimates, they are as low as 1.0% this year and 0.6% in 2026.
The Fed dots were adjusted in a hawkish direction but I suspect the market is more-focused on growth risks and that's why USD/JPY has fallen to 149.35 from 149.95.
USD/JPY 10 mins
