The US dollar experienced significant volatility on Wednesday as investors and markets reacted to the Federal Reserve's policy decision and comments from Fed Chair Jerome Powell.

The Federal Reserve decided to keep interest rates unchanged, as expected by market participants, but confirmed its readiness for potential rate cuts in the near future. Powell's cautious yet open remarks further fueled market uncertainty and currency fluctuations.

The Fed maintained rates in the range of 5.25%-5.50%. However, Chair Jerome Powell stated on Wednesday that interest rates could be lowered as early as September if the US economy follows the expected path.

While inflation remains a concern, recent data indicating a slowdown in economic growth prompted the Fed to adopt a more wait-and-see approach. The central bank's statement emphasized that it would closely monitor economic indicators and adjust policy as needed.

"The Committee will continue to assess additional information and its implications for monetary policy," the Fed's statement said.