Dollar jumps as Fed holds rates but projects one hike later this year (opens original article in a new tab)

The dollar rose as the Fed maintained rates but indicated a possible 2026 hike, with markets adjusting to reduced forward guidance and higher inflation forecasts.

• The dollar strengthened as the Fed held rates but signaled a potential hike in 2026
• The Fed's statement removed guidance on future rate moves and raised inflation projections to 3.6%
• U.S. interest-rate futures now price in a higher chance of a Fed rate hike by September
• Global currencies and markets reacted with the dollar rising against major rivals