The dollar Index rose above 100.3 on Wednesday, the highest since March, as traders digested the latest FOMC decision. The Federal Reserve left interest rates unchanged, as widely expected, in Kevin Warsh’s first meeting as Fed Chair. However, policymakers’ projections were interpreted as more hawkish than anticipated, with roughly half of FOMC members expecting at least one rate hike this year. The Fed also sharply revised upward its inflation forecasts. The 2026 PCE inflation projection was raised to 3.6% from 2.7% in the March forecast, while core PCE inflation is now expected to reach 3.3%, up from 2.7% previously. Traders have now fully priced in a quarter-point Fed rate hike by the end of the year. Meanwhile, Chair Warsh announced changes to the Fed, including five task forces that will address the central bank’s communications, its balance sheet and other issues. The greenback strengthened broadly, posting its largest gains against the British pound and the euro.