As expected, the Federal Open Market Committee made no changes to interest rates. The policy statement is essentially the same and mentions "muted inflation pressures" and that the "current stance of monetary policy is appropriate to support sustained expansion."
While there is nothing at all surprising about the Fed decision or the policy statement, there is a positive market reaction --probably in part because market participants are happy to simply have this news out of the way.
Chairman Powell will hold a press conference shortly. The market often reacts to Powell's comments less favorably, but he has done a better job of being market friendly in recent appearances.
The market loves to love the Fed, and simply doing what is expected is good enough to trigger some buying. We'll see how long it lasts before the focus shifts back to endless speculation about what will happen with tariffs.
The good news is that this market is not looking for excuses to sell off. On the contrary, the Fed doesn't need to do anything new for the market to celebrate.