Fed leaves rates unchanged but raises inflation forecasts and trims growth outlook, lifting the USD index above 100.
The Federal Reserve held interest rates steady but upwardly revised its inflation projections while lowering growth forecasts. The shift in expectations triggered a hawkish reaction, pushing the Dollar index above the 100 mark.
Earlier projections had pointed to a more balanced outlook, but the Fed’s updated dot plot signaled fewer rate cuts in 2024. The EUR/USD pair is now expected to trade within a 1.1450-1.1600 range, with resistance levels emerging near 101 for the Dollar index.
Markets reacted by strengthening the USD, reflecting revised expectations for tighter monetary policy amid persistent inflation concerns.