FOREX-Dollar rises as Fed cuts rates, but easing outlook uncertain

    * Fed cuts rates, but gives uncertain outlook
    * Fed reduces rates on excess reserves
    * Trump says Fed has "no guts, no sense, no vision"
    * Dollar holds near 7-week high vs yen after Fed decision
    * Graphic: World FX rates in 2019

 (Adds comment, Trump's remarks to Fed easing; updates prices)
    By Gertrude Chavez-Dreyfuss
    NEW YORK, Sept 18 (Reuters) - The dollar hit a seven-week high against the yen and a three-month peak
versus the Swiss franc on Wednesday after the Federal Reserve cut interest rates by a quarter of a
percentage point, as expected, but gave an uncertain outlook on future easing and sounded less bleak about
the U.S. economy.
    The dollar rose in seven of the last eight sessions against the yen, while touching the day's peaks
versus the euro.
    In cutting interest rates by 25 basis points for the second time this year, the Fed gave a nod to
ongoing global risks and "weakened" business investment and exports.
    But new projections showed policymakers at the median expected rates to stay within the new range
through 2020. However, in a sign of ongoing divisions within the Fed, seven of 17 policymakers projected
one more quarter-point rate cut in 2019.
    "It is perhaps a little more hawkish than what the market was hoping for. I think it's an
acknowledgement that there is a range of opinion within the policymaking apparatus here," said Tim Horan,
chief investment officer, at Chilton Trust in New York. 
    "If you look at our own U.S. numbers, what stands out is that inflation has been moving up and that's
slightly at odds with the stronger dollar that we've had." 
    In response to the Fed's action, President Donald Trump blasted the Fed, saying the U.S. central bank
and its Chair, Jerome Powell, had "No 'guts,' no sense, no vision!"
    In late afternoon trading, the dollar rose 0.3% to 108.42 yen, hitting a seven-week high of
108.43. The dollar index, tracking the unit against a basket of other currencies, was up 0.3% at
98.56, advancing against the Swiss franc to 0.9981 franc.
    The euro fell 0.3% against the dollar to $1.1031.
    "The tone of the Fed's new forecasts remained largely sanguine despite the global risks," said Joe
Manimbo, senior market analyst at Western Union Business Solutions in Washington. "Consequently, the
dollar isn't likely to stray far from recent highs." 
    Aside from cutting interest rates, the Fed changed two key rates used to manage its main policy lever.
It lowered the  interest it pays on excess bank reserves (IOER) by 30 basis points, to 1.80%. The rate now
sits 20 basis points below the top of the target range, compared to 15 basis points previously.

    The Fed also set its offering rate for any necessary operations in the $2.2 trillion repurchase
agreement, or repo, market, at 1.70%, five basis points below the bottom of the new target range for the
policy rate.
    The changes came after turmoil this week in funding markets briefly pushed the overnight bank-to-bank
lending rates above the U.S. central bank's target range.
    Currency bid prices at 3:24PM (1924 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
 Euro/Dollar      EUR=        $1.1016        $1.1071     -0.50%         -3.95%      +1.1075     +1.1015
 Dollar/Yen       JPY=        108.4500       108.1200    +0.31%         -1.65%      +108.4600   +108.0900
 Euro/Yen         EURJPY=     119.48         119.69      -0.18%         -5.34%      +119.8100   +119.4200
 Dollar/Swiss     CHF=        0.9980         0.9930      +0.50%         +1.69%      +0.9983     +0.9927
 Sterling/Dollar  GBP=        1.2479         1.2500      -0.17%         -2.18%      +1.2510     +1.2440
 Dollar/Canadian  CAD=        1.3297         1.3241      +0.42%         -2.49%      +1.3309     +1.3240
 Australian/Doll  AUD=        0.6818         0.6864      -0.67%         -3.28%      +0.6869     +0.6813
 Euro/Swiss       EURCHF=     1.0998         1.0994      +0.04%         -2.27%      +1.1019     +1.0985
 Euro/Sterling    EURGBP=     0.8828         0.8855      -0.30%         -1.74%      +0.8880     +0.8825
 NZ               NZD=        0.6308         0.6356      -0.76%         -6.09%      +0.6362     +0.6301
 Dollar/Norway    NOK=        8.9595         8.9210      +0.43%         +3.71%      +8.9794     +8.9230
 Euro/Norway      EURNOK=     9.8737         9.8792      -0.06%         -0.33%      +9.9062     +9.8678
 Dollar/Sweden    SEK=        9.7391         9.6693      +0.22%         +8.65%      +9.7450     +9.6669
 Euro/Sweden      EURSEK=     10.7309        10.7078     +0.22%         +4.55%      +10.7431    +10.7040
 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Richard Leong and Kate Duguid; Editing by
David Gregorio and Nick Zieminski)