PowerShares DB US Dollar Bullish Fund (NYSEArca: UUP) fell further Wednesday after the Federal Reserve cut its forecast for U.S. economic growth this year and as Fed chief Ben Bernanke fielded questions from reporters in a press conference.

The dollar ETF, which tracks the greenback’s movements against a basket of currencies, was down 0.3% in afternoon trading Wednesday while Bernanke held a press conference and spoke about the central bank’s views on the economy and inflation.

The dollar ETF fell to a new record low Wednesday and was threatening to drop below $21 a share.

The Fed now sees the economy growing between 3.1% and 3.5% this year, down from its earlier forecast in the range of 3.4% to 3.9%. The central bank also boosted its forecast for inflation.

In its statement Wednesday following the two-day meeting, the Fed said inflation “has picked up in recent months, but longer-term inflation expectations have remained stable and measures of underlying inflation are still subdued.”

PowerShares DB US Dollar Bullish Fund

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