Dollar rallies, US stocks fall as Fed signals it could hike again in 2023

NEW YORK, Sept 21 — Wall Street stocks dropped and the dollar rallied Wednesday after the Federal Reserve kept interest rates unchanged, but signalled it could lift them again this year.

“The Fed is not done with raising interest rates,” added Kathy Lien, a foreign exchange expert at BK Traders. “I think there’s more rate hikes ahead.” After 11 interest rate increases since March last year, inflation has fallen sharply but remains above the Fed’s long-run target of two percent, keeping pressure on officials to consider further policy action.

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