US Dollar Rallies on Fed Hawkishness. Forecast as of 17.09.2026

The start of a monetary tightening cycle—rather than a single rate hike—is not the only factor behind the decline in the EUR/USD. Kevin Warsh has also helped restore confidence in the US dollar and US Treasuries. Let's discuss these developments and build a trading plan.Major Takeaways The Fed has raised the federal funds rate for the first time since 2023. The market views this as the start of a cycle of monetary tightening. The central bank's decisive action has restored confidence