Fed meeting preview - hawks to dominate the scene?

The Federal Reserve is expected to leave interest rates unchanged on Wednesday, 18th March.

However, the outlook for 2026 remains uncertain due to concerns rising price pressures.

Fed Policy outlook:

Traders are pricing in one rate cut in 2026.

Fears of inflation shocks may prompt Fed officials to strike a firmly hawkish stance.

Regarding the “dot plot”, it is expected to drift higher relative to December consistent with the upward inflation revisions.

Here is how these assets are forecasted to react to the Fed decision.

Source: Bloomberg.

USDInd: ↑ 0.4 % or ↓ 0.3%

NAS100: ↑ 1.3 % or ↓ 0.8%

US500: ↑ 1.1 % or ↓ 0.5%

XAUUSD: ↑ 2.0 % or ↓ 1.2%

XAGUSD: ↑ 3.1 % or ↓ 1.4%

BITCOIN: ↑ 1.6 % or ↓ 1.2%