The Federal Reserve is widely expected to maintain its interest rates in April, with the CME FedWatch Tool indicating a 98.4% probability of no change. The likelihood of a 25 basis point hike stands at just 1.6%, reflecting minimal expectations for tightening in the near term. Looking ahead to June, the outlook remains stable with a 96.8% probability of no rate change and only a 1.5% chance of a cut. Despite a recent spike in the Consumer Price Index (CPI) driven by energy prices, market expectations have not shifted significantly. This suggests that inflation is viewed as temporary and largely energy-driven, with core inflation remaining stable. Consequently, the Federal Reserve is adopting a 'wait-and-see' approach, with policy decisions likely hinging on future inflation trends and broader economic data. The current environment supports the dollar and yields, while risk assets like cryptocurrencies and equities face challenges from macroeconomic conditions.