Fed Holds Rates at 3.5%-3.75%, Powell's Dovish Signal to Drive Bitcoin, Dollar Moves

The Federal Reserve held its benchmark rate steady at 3.5%-3.75% on January 28, 2026, as widely expected. Market focus is now on Chair Jerome Powell's press conference for signals on future policy, with his tone likely to trigger moves in the U.S. dollar and bitcoin. Futures had priced a 96% chance of no change. The primary intrigue is whether the pause signals a hawkish or dovish stance. A dovish tilt, potentially reinforced by dissenting votes favoring cuts, could lift risk assets like bitcoin. Analysts at ING suggest Powell's justification for holding rates may instead strengthen the dollar, pressuring dollar-denominated assets. Powell is also expected to address the market impact of recent Trump administration housing affordability measures.