US dollar softens after the FOMC decision

The Fed decision emphasized uncertainty in the outlook in light of fights over US tariffs and fiscal policy. Expect Powell to be quizzed about that extensively at the 2:30 pm ET press conference.

For now, the market is likely focusing on downgraded growth forecasts with the median falling to 1.7% this year from 2.1% and 1.8% next year from 2.0%. Looking at the range of estimates, they are as low as 1.0% this year and 0.6% in 2026.

The Fed dots were adjusted in a hawkish direction but I suspect the market is more-focused on growth risks and that's why USD/JPY has fallen to 149.35 from 149.95.