The dollar index stabilized near 104 on Thursday after sliding to six-month lows in the previous session as the Federal Reserve delivered a more moderate half percentage point rate hike in a widely expected move, but signaled that the fed funds rate could peak higher than anticipated in 2023. The central bank projected rates would end at 5.1% next year before being lowered to 4.1% in 2024, higher than previously indicated. Fed Chair Jerome Powell said that the size of future rate increases would depend on incoming data, but warned that the Fed “still have some ways to go” in its tightening campaign. Median forecasts for US GDP growth were also revised sharply lower to 0.5% in 2023 from 1.2%, while the unemployment rate was revised to 4.6% from 4.4%, pressuring the dollar further.
