As the Federal Reserve implemented yet another aggressive interest rate hike in reaction to out-of-control inflation on Wednesday, the US dollar soared to a level that is almost 20 years higher against the euro.

Only a few months after the euro was become the sole legal money of the 12 member states of the European Union, the euro to dollar ratio reached 0.9814 for the first time since October 2002.

Prior to the 1800 GMT Fed speech, Wall Street equities were in the green. However, after the statement, they plunged into the red.

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Interest rate projections for the end of 2023 and 2024 in the most recent Fed announcement were higher than anticipated, indicating that the US central bank now believes a longer monetary tightening cycle is necessary in light of inflation trends.

According to a report from High-Frequency Economics, “Overall, the message from the (Fed) remains hawkish, with the Fed committing to further rates hikes to combat inflation and keep inflation expectations anchored.”