The post US Dollar Index tumbles as Fed rate outlook widens appeared on BitcoinEthereumNews.com. The US Dollar Index (DXY) tumbled to fresh intraday lows on Wednesday after the Federal Reserve (Fed) delivered a widely anticipated third straight interest rate cut, lowering its main policy rate to its lowest level in three years. The Federal Open Market Committee (FOMC) voted nine-to-three in favor of another quarter-point interest rate cut. One policymaker preferred a larger cut of 50 basis points, while two members opted for no cuts at all. As we approach the end of the year, the range of FOMC policy outlooks has expanded. However, markets are particularly focused on a notable hawkish tilt in the Fed’s economic outlook for 2026, as reflected in the latest update to the Summary of Economic Projections (SEP). The dot plot of FOMC interest rate expectations has also diversified, but investors are paying attention to an increasing number of Fed policymakers who anticipate two or more interest rate cuts in the upcoming year. More to come… DXY 5-minute chart Economic Indicator Fed Interest Rate Decision The Federal Reserve (Fed) deliberates on monetary policy and makes a decision on interest rates at eight pre-scheduled meetings per year. It has two mandates: to keep inflation at 2%, and to maintain full employment. Its main tool for achieving this is by setting interest rates – both at which it lends to banks and banks lend to each other. If it decides to hike rates, the US Dollar (USD) tends to strengthen as it attracts more foreign capital inflows. If it cuts rates, it tends to weaken the USD as capital drains out to countries offering higher returns. If rates are left unchanged, attention turns to the tone of the Federal Open Market Committee (FOMC) statement, and whether it is hawkish (expectant of higher future interest rates), or dovish (expectant of lower future… The post US Dollar Index tumbles as Fed rate outlook widens appeared on BitcoinEthereumNews.com. The US Dollar Index (DXY) tumbled to fresh intraday lows on Wednesday after the Federal Reserve (Fed) delivered a widely anticipated third straight interest rate cut, lowering its main policy rate to its lowest level in three years. The Federal Open Market Committee (FOMC) voted nine-to-three in favor of another quarter-point interest rate cut. One policymaker preferred a larger cut of 50 basis points, while two members opted for no cuts at all. As we approach the end of the year, the range of FOMC policy outlooks has expanded. However, markets are particularly focused on a notable hawkish tilt in the Fed’s economic outlook for 2026, as reflected in the latest update to the Summary of Economic Projections (SEP). The dot plot of FOMC interest rate expectations has also diversified, but investors are paying attention to an increasing number of Fed policymakers who anticipate two or more interest rate cuts in the upcoming year. More to come… DXY 5-minute chart Economic Indicator Fed Interest Rate Decision The Federal Reserve (Fed) deliberates on monetary policy and makes a decision on interest rates at eight pre-scheduled meetings per year. It has two mandates: to keep inflation at 2%, and to maintain full employment. Its main tool for achieving this is by setting interest rates – both at which it lends to banks and banks lend to each other. If it decides to hike rates, the US Dollar (USD) tends to strengthen as it attracts more foreign capital inflows. If it cuts rates, it tends to weaken the USD as capital drains out to countries offering higher returns. If rates are left unchanged, attention turns to the tone of the Federal Open Market Committee (FOMC) statement, and whether it is hawkish (expectant of higher future interest rates), or dovish (expectant of lower future…