Dollar Weakens Ahead of Fed Decision, Investors Prepare for Volatility

The US dollar has weakened ahead of the Federal Reserve's (Fed) decision today, September 16, 2026. Markets are pricing in a risk that the Fed's rate move and guidance could reset near-term direction across asset classes.

A combination of a rate increase and hawkish communication would tend to lift the USD, while a more moderate message could weigh on the currency and allow equities to extend their recovery.

The FOMC meeting is expected to drive the largest market reaction, with attention focused on the rate decision, accompanying statement, projections, and Chair Powell's press conference.