Markets are currently anticipating no interest rate cuts by January 2026, with over 75% odds reflecting traders' quick shifts in expectations following a recent Federal Reserve policy change. Inflation concerns and uneven price pressures continue to complicate policymaking, leading to cautious optimism about rate cuts. As higher rates maintain tight financial conditions, risk assets like equities and cryptocurrencies face pressure, with traders adopting a patient approach. Fed communication significantly influences market psychology, adding to volatility as investors await clearer policy indications.