Dollar hits fresh 20-year highs after Fed's decisions

Dollar rose in European trade against a basket of major rivals for the third straight session, hitting fresh 20-year highs after the Federal Reserve's policy decisions. 

The Federal Reserve hiked interest rates by 75 basis points for the third meeting in a row to 3.25%, the highest since 2008.

The Index

The dollar index rose over 0.3% to 111.81, the highest since June 2002, after rising 1.05% yesterday on haven demand after Russian President Vladimir Putin announced partial military mobilisation, and following the Fed's meeting. 

The Federal Reserve 

As expected the Federal Reserve hiked interest rates by 75 basis points for the third meeting in a row to 3.25%, the highest since 2008.

The Fed intends to maintain its bullish stance against inflation, raising rates to 4.5% by the end of the year, which means we have 125 basis points of rate hikes in the last two meetings of the yer.

The Fed is aiming for the neutral 4.75% level for interest rates, which means raising rates by just 25 basis points in 2023.

Jerome Powell

Fed Chair Jerome Powell said his message hasn't change since Jackson Hall, with the Federal Open Market Committee aiming to cut inflation 2% through aggressive policy tightening until it's done.