Fed holds policy rate at 3.50–3.75%, signaling a pause in tightening

- The Federal Reserve left its policy rate target at 3.50–3.75%, holding steady amid unclear inflation and Middle East energy risks and Powell term uncertainty. - Markets now push expected rate cuts to year-end, with bond yields, AI-led stock rallies, and Brent crude above $100 in play this week. - The Fed's stance amid macro uncertainty tightens the messaging calculus for markets going into summer. (x.com 1) (x.com 2)