The US dollar is trading bullish after Wednesday’s Fed meeting in which Chairman Jerome Powell sounded less dovish than expected. At the time of writing, the US dollar index DXY is trading at around 98.47.

Although the Fed cut interest rates by 25 bp, markets had fully priced in this rate cut, and as a result, the dollar remained largely unaffected by this announcement. However, the US dollar climbed against major peers as Powell mentioned that conditions for the US economy appeared favorable and that the rate cut was only an act of insurance.

By a 7-3 vote, the Fed funds rate was brought down to 1.75-2.00%, and the latest projections expect policymakers to remain steady within this range until 2020. However, futures markets anticipate one more possible rate cut by the next year.