#FedRateCutAffectsDollarTrend Determining how the Federal Reserve’s interest rate decisions affect the market and the U.S. dollar involves analyzing several key indicators and economic factors. Here’s how you can assess the impact: 1. Watch Fed Announcements and Forward Guidance • The Federal Open Market Committee (FOMC) meetings determine interest rate changes. The Fed’s statements, economic projections, and press conferences provide insights into future rate policy. • Fed Funds Futures (available on the CME Group website) reflect market expectations of rate changes. 2. Monitor U.S. Treasury Yields • Higher interest rates usually lead to higher Treasury yields (especially on 2-year and 10-year bonds), attracting foreign capital and strengthening the U.S. dollar. • Falling yields indicate lower expected rates, reducing dollar strength.