US stocks fall, dollar rallies as Fed raises inflation forecast (opens original article in a new tab)

US stocks declined and the dollar strengthened after the Federal Reserve increased its inflation forecast and signaled a potential interest rate hike by year-end.

• US stocks fell and dollar rallied after Fed raised inflation forecast
• Fed raised year-end PCE inflation expectations to 3.6% from 2.7%
• Fed projected one interest rate hike by end of 2026
• Futures markets shifted to 60% bets on rate hikes at September meeting