FOREX-Dollar drops as Fed officials forecast rate cuts

The dollar dropped against the euro and yen on Wednesday after the Federal Reserve signaled in new economic projections that the historic tightening of U.S. monetary policy engineered over the last two years is at an end and lower borrowing costs are coming in 2024. A near unanimous 17 of 19 Fed officials project that the policy rate will be lower by the end of 2024 than it is now – with the median projection showing the rate falling three-quarters of a percentage point from the current 5.25%-5.50% range.