Fed Hikes Rates as Global Central Banks Follow Suit

The Federal Reserve has raised its benchmark interest rate to 3.75-4.00%, marking its first increase since 2023.

This move was expected, but it's still a significant shift in monetary policy that could impact the US Dollar Index (DXY).

The DXY measures the Greenback against six currencies, with the Euro accounting for 57.6% of its value and the Yen and Pound making up roughly another quarter.

Notably, both the European Central Bank (ECB) and the Bank of England have also raised rates recently, which could soften the impact of the Fed's decision on the DXY.