The Fed raises interest rates by 25 basis points, while traders await Powell's remarks.

Main Points:
• The Federal Reserve increased the federal funds rate, ranging between 525 and 550 basis points.
• The FOMC statement did not reveal any surprising details.
• Expectations of Powell's remarks being less hawkish than anticipated led to a decline in the U.S. dollar, according to traders.

On July 26, the Federal Reserve published the FOMC statement, announcing the federal funds' rate hike to a range between 525 and 550 basis points, as predicted by analysts. The bank highlighted the resilience of the U.S banking system and the potential future effect of tighter credit on the economy, employment, and inflation. The Fed reaffirmed their commitment to achieve a 2% inflation rate.

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Following the Fed's decision, the U.S. Dollar Index pulled back. Traders, having seen no surprising elements in the FOMC statement, are now awaiting comments from Powell. Gold is oscillating around the $1970 mark, with traders watching for additional influencing factors. The S&P 500 attempted to bounce back from its session lows, though it remains unclear whether this recovery will endure due to potential hawkish implications in Powell's forthcoming remarks.