The Fed stands firm: the FOMC tightens its tone in the face of uncertainties. After three months of tariff easing, the Federal Reserve pauses and refuses to go further. The signals are nuanced but firm: the labor market is stabilizing, but inflation remains well above the 2% target. No flexibility in sight.

Tensions are mounting from all sides. The new tariff threats from the U.S. side, the decline of the dollar (DXY falling), massive bond sales – everything points to a period of increased instability. Add the imminent government shutdown risks and you have a perfect recipe for volatility.

Powell's upcoming message is unlikely to surprise: the Fed is holding steady. No favors for easing requests. The strategy is clear – keep rates higher, longer. Investors are digesting a less comfortable reality: rates will remain restrictive, no matter what happens. Markets are absorbing the shock and expect prolonged turbulence.