Fed Keeps Rates Steady, Markets Eye Upcoming Data Releases

The Federal Reserve kept interest rates unchanged at 3.50% to 3.75%, matching market expectations.

However, Fed Chair Kevin Warsh's press conference was the real story, as he avoided providing forward guidance and reiterated the Fed's commitment to restoring price stability.

Warsh emphasized that future decisions will remain data dependent, and several FOMC members favor a rate hike, reinforcing concerns about upside inflation risks.

For EUR/USD, the lack of a dovish signal limited downside pressure on the U.S. dollar but failed to spark a sustained rally.

Investors are now focusing on upcoming U.S. inflation, labor market, and growth data, which will determine whether expectations move toward another rate increase later this year or continued policy stability.