The Fed kept its benchmark interest rate in a range of 3.50% to 3.75%, but the decision was accompanied by three dissents from policymakers, prompting analysts to describe the outcome as a "hawkish hold" rather than a dovish pause. The decision has added uncertainty to the outlook for both equities and bonds, particularly as Fed Chair Kevin Warsh continues to avoid providing clear forward guidance on future policy moves. September rate hike remains on the tableMarkets initially increased expectations for a September rate hike following the Fed's announcement. Pressure on stocksMarket observers say a hawkish hold can be challenging for equities because it suggests interest rates may remain elevated for longer than expected. "He is allowing markets to find the right level for interest rates and inflation," Arone said.