The dollar index (DXY00) Wednesday tumbled to a 14-month low and finished down by -0.12%. The dollar sank Wednesday after the FOMC cut the fed funds rate by 50 bp and projected another 50 bp of rate cuts by the end of the year. The dollar was also undercut after the Fed cut its 2024 US GDP forecast and cut its 2024 core PCE price forecast, dovish factors for Fed policy. The dollar recovered from its worst levels after Fed Chair Powell said the Fed is in no rush to ease monetary policy.
The FOMC voted 11-1 to cut the fed funds target range by 50 bp to 4.75%-5.00% and said the committee is "strongly committed to supporting maximum employment" and returning inflation to its 2% goal.
