# Fed Rate Hike vs Dollar Index

> Fed rate hike expected to boost US Dollar Index.
- Title: Fed Rate Hike vs Dollar Index · TradingView | Shortify
- Summary: Fed rate hike expected to boost US Dollar Index. The Fed's anticipated 25 basis point rate hike today will push the US Dollar Index above 100.30 as global…
- Keywords: fed, usdollarindex, dxy, ratehike, fomc, trump, inflation, cpi, ppi, nonfarmpayrolls, business, finance
- Source: TradingView — https://tradingview.com/chart/DXY/mPqUUwHC-The-Fed-Interest-Rate-Roadmap-2020-2026-vs-US-Dollar-DXY
- Published: 2026-09-16T09:10:33+00:00
- Read time: 1 min
- Topics: fed, usdollarindex, dxy, ratehike, fomc, trump, inflation, cpi, ppi, nonfarmpayrolls, business, finance
## Fed Rate Decision Today
The Fed is expected to hike rates by 25 basis points today, taking the federal funds rate from 3.50-3.75% to 3.75-4.00%.
## US Dollar Index Reaction
A rate hike today will likely push the US Dollar Index above 100.30 and trigger a new structural leg higher in the market.
## Inflation Drivers
High inflation is driven by oil/energy shocks from the Iran war and Ukraine-linked refinery disruptions in Russia, with core inflation rising 0.3% monthly.
## Labor Market Strength
The labor market remains strong with nonfarm payrolls adding 162,000 jobs and unemployment steady at 4.1% in August.
## Fed Independence
Fed Chair Warsh has repeatedly stated Trump has had no impact on his decisions, and will likely defy Trump's public demands for rate cuts.
## Market Implications
Global capital is expected to rush back into higher-yielding US assets as the Fed moves in the opposite direction of other central banks.
## Key takeaway

The Fed's anticipated 25 basis point rate hike today will push the US Dollar Index above 100.30 as global capital flows back to higher-yielding US assets.