US stock markets decline while the US dollar strengthens after the Federal Reserve lifts its inflation outlook. Multiple reports say the Fed increases its inflation forecast to 3.6% from 2.7% previously, according to its latest projections. The Fed also signals that it expects tighter monetary conditions, with interest-rate increases projected by the end of the year. As the Fed’s updated guidance circulates, investors appear to adjust their expectations for the path of US interest rates, contributing to selling pressure in equities and support for the dollar. The articles attribute the market moves specifically to the revised inflation forecast and the implication that further hikes may be necessary to address price pressures. Overall, the reporting centres on how the Fed’s updated projections affect near-term expectations for rates, leading to lower stock prices and a stronger currency.