Dollar Weakens on Dovish Fed Signals

2026-10-28 18:08 By Joana Ferreira 1 min. read

The US Dollar Index slipped to 102.1 on Wednesday after the Federal Reserve kept interest rates unchanged as expected, while subtle changes in its policy statement were interpreted as signs of a slightly more dovish stance.

The FOMC voted 10–2 to maintain the federal funds rate within the 3.75%–4% range, with Governor Lisa Cook and Cleveland Fed President Beth Hammack dissenting and favoring a 25-basis-point increase.

However, policymakers offered no clear indication of whether rates could rise again in December, emphasizing that incoming data would guide future decisions and help bring inflation back to the 2% target.

During the post-meeting press conference, Fed Chair Kevin Warsh also announced that the FOMC would continue to hold eight meetings annually but plans to reduce the number of policy rate decisions to seven in 2027 and six in 2028.

The announcement comes less than a week before the November midterm elections, amid widespread public dissatisfaction with the economy.



News Stream
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2026-10-29
Dollar Weakens on Dovish Fed Signals
The US Dollar Index slipped to 102.1 on Wednesday after the Federal Reserve kept interest rates unchanged as expected, while subtle changes in its policy statement were interpreted as signs of a slightly more dovish stance. The FOMC voted 10–2 to maintain the federal funds rate within the 3.75%–4% range, with Governor Lisa Cook and Cleveland Fed President Beth Hammack dissenting and favoring a 25-basis-point increase. However, policymakers offered no clear indication of whether rates could rise again in December, emphasizing that incoming data would guide future decisions and help bring inflation back to the 2% target. During the post-meeting press conference, Fed Chair Kevin Warsh also announced that the FOMC would continue to hold eight meetings annually but plans to reduce the number of policy rate decisions to seven in 2027 and six in 2028. The announcement comes less than a week before the November midterm elections, amid widespread public dissatisfaction with the economy.
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