"But the euphoria in equities-"AMERICA IS BACK!!!" President Donald Trump cried on Truth Social-was matched by a move in the opposite direction for the greenback. The U.S. dollar index (DXY) has shed more than 10% of its value over the past year, sliding further after Trump signaled late Tuesday a multi-year low for the currency was "great." The U.S. dollar index rebounded slightly on Wednesday as Treasury Secretary Scott Bessent said on "the U.S. always has a strong dollar policy.""
"Inflation, the Committee said, "remains somewhat elevated." While acknowledging some progress on price pressures, officials emphasized that they still require "greater confidence" that inflation is moving sustainably toward the 2% target before resuming the rate-cutting cycle that defined the end of 2025.The Fed also underscored increased uncertainty around its outlook and said it would attend to both sides of the mandate."
The Federal Reserve left the policy rate at 3.50%–3.75% to project stability amid divergent market signals. Economic activity continued to expand at a solid pace while job gains remained low and unemployment showed signs of stabilizing. Inflation remains somewhat elevated and officials said they need greater confidence that inflation is moving toward the 2% target before resuming rate cuts slated for late 2025. The Fed noted increased uncertainty and said it would attend to both sides of its mandate. The S&P 500 crossed 7,000 as the U.S. dollar fell over 10% in the past year, a shift that can boost exports but risks importing inflation and unsettling foreign investors needed to fund the U.S. deficit.
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