Fed’s Patience Faces Its Biggest Test: Jobs Wednesday, Inflation Friday

This week, the Federal Reserve will find out if it can keep hitting the pause button—or if the market is about to force its hand.

After cutting interest rates aggressively through late 2025, Fed officials spent this week saying essentially the same thing: “We’re holding steady, and we’re in no rush to change course.” But two major economic reports landing this week—Wednesday’s jobs data and Friday’s inflation numbers—could either validate that patience or blow it up entirely.

Here’s what’s happening and why it matters for anyone trading dollar pairs.