"Rate rises, supposed QE tightening aka balance sheet reductions...

"Rate rises, supposed QE tightening aka balance sheet reductions should raise the strength of US$ not reduce it."

In a normal economic environment, I agree.
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But since 2008 it's been anything but normal. To try to justify it, they're calling it the "new normal". (choke)
The banks, markets and corporates are drunk on all the funny money, still being created. (insurance companies, pension funds and all others who require a real return on their money are in deep sheet)
"QE tightening" is anathema to the markets in this "new normal", so no surprise there.
This is Zimbabwe economics, which must continue until the USD becomes completely unacceptable to trading partners.
I expect, going forward..
Increased efforts by London/Wall St. to hold the gold price down, until they can't any more.
Accelerating de-dollarisation of world trade as Russia and China Launch their gold backed alternative trading systems, and the "one belt, one road" Eurasion infrastructure build expands.
An continued inactive US Fed, apart from the same old repetitive jawboning.
A gridlocked US political system, unable to start an infrastructure rebuild program, or to rein in the budget deficit.
Increased gov't spending on disaster relief. Insurance funds in distress.
Increased military spending in defence of the dying petrodollar. More US military adventures.
The deep state at war with the President.
The President is widely considered a buffoon outside the US.
The US is "on the nose" with so many nations now, that it's clear that it's isolating itself. It looks like it's intentional, but I don't rule out the possibility that it's just stupidity.
I doubt there's a way back from the present sad place that the US finds itself now. There's certainly no way back to economic normalcy without great pain.
23.