The Federal Reserve refrains from signaling imminent rate cuts, causing investors to lower expectations for easing at the next policy meeting. Interest rates remain in a 4.25%-4.50% range, with a 46% probability of a rate cut by September. Fed Chair Powell keeps options open, citing the need for more data.

Powell faces pressure from the White House to lower interest rates but remains reticent on timing. This uncertainty leaves investors to analyze inflation and employment data for the timing of policy easing. Small-cap stocks feel pressure, with the Russell 2000 index down 0.47%. The dollar gains support from the Fed’s hawkish message.

Despite the Fed’s patience and strength in the U.S. economy, some expect weakness for the dollar in the medium-term. Higher rates in the U.S. boost the dollar’s appeal. Experts warn against reading too much into the market’s reaction to the Fed meeting, expecting three to five cuts by the end of next year.

Read more at Yahoo Finance: Analysis-Fed’s reticence on rate cuts forces market to rethink outlook