The US Federal Reserve increased the Federal Funds Target Range by 25 basis points to 3.75%–4.00%, according to FX Street. This move, announced by the Federal Open Market Committee, was followed by a press conference from Fed Chair Kevin Warsh.
The rate hike strengthened the US Dollar, with USD/JPY reaching weekly highs near 155.50. Meanwhile, precious metals reacted negatively; spot gold traded around $4,250 after an intraday peak of $4,366, and silver fell 1.56% to $62.68. The Dow Jones Industrial Average also declined, dropping 576 points or 1.11% to just above 51,500.
The Fed’s updated projections raised the 2026 interest rate forecast from 3.8% in June to 4.1%, signaling a potentially more aggressive monetary stance. For Japanese investors, the stronger dollar and higher US rates may influence currency and equity market dynamics moving forward.