Core Viewpoint - The Federal Reserve is expected to maintain its current interest rates, with significant attention on Chairman Jerome Powell's comments regarding future monetary policy and economic conditions, which could impact both traditional and cryptocurrency markets [1][3][5]. Interest Rate Status - The Federal Reserve is anticipated to hold rates steady at 3.5%-3.75%, with a 96% probability priced in by CME's FedWatch futures [3]. - This decision aligns with Powell's previous statements indicating no further cuts until at least 2026, supported by Minneapolis Fed President Neel Kashkari's assertion that it is "way too soon" for additional cuts [4]. Market Reactions - The Fed's decision is likely to be a non-event unless an unexpected rate cut occurs, which could negatively affect the dollar while positively impacting bitcoin and stocks [5]. - Traders are focused on whether the Fed's pause in rate cuts indicates a hawkish or dovish stance, with a hawkish pause suggesting ongoing inflation risks and a dovish pause indicating potential future rate cuts [6]. Dovish Signals - Morgan Stanley predicts the Fed will convey a dovish signal by maintaining language in its policy statement that suggests future adjustments are possible, while recognizing the economy's strength [7]. - The presence of dissenters, particularly Stephen Miran, who may advocate for a significant rate cut, could enhance the dovish outlook and support for future easing, potentially benefiting stocks and bitcoin [8].