The dollar index rose by 0.49% on Wednesday after the Federal Reserve signaled higher interest rates later this year. The FOMC kept the fed funds rate target unchanged at 3.50%-3.75% but raised its 2026 rate projection to 3.750%, up from a prior estimate of 3.375%, implying at least one more quarter-point rate hike. Fed Chair Keven Warsh announced task forces to examine central bank functions including communications and the inflation framework. Stronger-than-expected US retail sales and pending home sales data also supported the dollar.