#MyGateTradeStory FOMC: The Federal Reserve has become noticeably more hawkish

New FOMC materials turned out to be more important than the rate decision itself.

What has changed

🔴 All Federal Reserve members have raised their assessment of inflation risks.

🔴 The average forecast for the end of 2026 rate:

was: 3.4%
became: 3.8%

🔴 9 out of 18 FOMC participants now expect a rate hike in 2026.

⚪️

What does this mean

Just a few months ago, the market was debating rate cuts.

Now the Fed itself says:

➡️ inflation may prove to be more persistent than expected.

➡️ rates will have to stay high longer.

➡️ the probability of a new hike has increased.

⚪️

Why is this important

Previously, the market was pricing in:

rate cuts
soft landing
return of cheap liquidity

After this meeting:

⚠️ the “higher for longer” scenario has become the baseline.

⚪️

Market reactions

🟢 Bond yields

positive
may reach new highs

🟢 USD

support

🔴 BTC

negatively in the medium term

🔴 NASDAQ and the tech sector

pressure from expensive money

⚪️

Summary

This is arguably the most hawkish Fed signal in recent months.

In fact, the Fed told the market:

“We are no longer confident that inflation will quickly return to the target, so we are prepared to keep rates high longer and raise them again if necessary.”