Dec 18 (Reuters) - The dollar index jumped the most since the U.S. presidential election in early November after the Federal Reserve lowered its policy rate to a 4.25%-4.50% range, as expected while delivering a more hawkish outlook and growth and inflation projections.

The median Fed projection signaled only two cuts in 2025, which would reduce the benchmark rate to 3.9%, versus 3.4% foreseen in the September forecast. Cleveland Fed President Hammack, a hawk, dissented by voting to leave the policy rate unchanged.

Fed Chair Jerome Powell said the policy stance is significantly less restrictive and, therefore, the FOMC can be more cautious about reducing rates. He said the policy-setting committee want to see progress on inflation when thinking about more cuts, though expectations are well anchored.

Powell also said the risks to achieving the Fed's dual policy goals are roughly in balance.

The dollar index reached a year-to-date high of 108.156 after the Fed.

Market pressure on France due to concern over its budget deficit has been "limited”, European Central Bank Chief Economist Philip Lane said at an MNI conference.

ECB policymaker Pierre Wunsch told Reuters that a weaker euro would cushion the impact of any new U.S. tariffs on euro zone growth although it would push up inflation.

The pound was little changed after an earlier report that U.K. annual inflation hit an eight-month high of 2.6% in November, though services prices were steady.

The Australian, New Zealand and Canadian dollars fell to their lowest level in over two years after the Fed.

The yen trimmed losses against the dollar ahead of Thursday's Bank of Japan policy decision.

Treasury yields jumped 7 to 11 basis points and the 2s-10s curve flattened.

The S&P 500 slumped 1.02%, dragged down by consumer discretionary and real estate shares.

Oil was up 0.68% after U.S. crude inventories fell in the latest week.

Gold slid 1.3% while copper was down 0.22%, hurt by the broadly stronger dollar and higher Treasury yields.

Heading toward the close: EUR/USD -1.32%, USD/JPY +0.66%, GBP/USD -1.14%, AUD/USD -1.74%, DXY +1.20%, EUR/JPY -0.7%, GBP/JPY -0.47%, AUD/JPY -1.07%.

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(Editing by Burton Frierson Reporting by Robert Fullem)

((robert.fullem@thomsonreuters.com;))