The dollar fell amid a press conference by Fed Chairman Jerome Powell.

The dollar index declined despite rising US government bond yields. The 10-year Treasury yield reached a nearly three-year high of about 2.24%.

As a result of the March meeting, the US Federal Reserve System (FRS) expectedly raised the base interest rate by 0.25%, to the level of 0.25-0.5% per annum, the regulator said in a press release.

In addition, the Fed announced the start of reducing its balance sheet by $8.9 trillion from the next meeting.

FOMC members voted 8–1 in favor of the raise. The well-known hawk, St. Louis Fed President Bullard, immediately voted for a 0.50% rate hike.

Most FOMC members expect seven 0.25% rate hikes by the end of the year, with six more ahead, roughly in line with futures prices.

FOMC member rate projections suggest that the Fed rate will be 1.9% at the end of the year, reach 2.8% in 2023, and remain at that level in 2024 when the forecast horizon ends.

The head of the US Federal Reserve, Powell, noted the good state of the US economy and a strong labor market. At the same time, high rates of inflation "create significant difficulties." Powell vowed to do whatever is necessary to slow inflation.

The economy no longer needs emergency monetary policy, and rate hikes should have started earlier, the Fed chief said.