The Federal Reserve didn’t raise rates. It did something arguably more powerful: it told markets it might.
Following the June 17-18 FOMC meeting, currency traders wasted no time loading up on dollar call options, betting the greenback has more room to run. The Fed held its benchmark rate at 3.5-3.75%, but the accompanying projections painted a picture that made dollar bulls salivate and risk-asset holders wince. The median year-end rate projection for 2026 came in at 3.8%, with nine out of 18 officials anticipating at least one rate hike before December.
In English: the Fed is done cutting for now, and a meaningful chunk of its leadership thinks the next move is up, not down.
The dollar flexes, everything else flinches
The USD index climbed to approximately 100.71, approaching its one-year high. Over $2 trillion in market value was erased across stocks and crypto assets in the aftermath of the Fed’s meeting. Gold posted weekly losses. And Bitcoin, which had been flirting with higher levels, dropped roughly 3% to around $63,900 on June 18.
