Fed decreases federal funds target: short-run effect:

The short-run Phillips curve illustrates the inverse relationship between inflation and unemployment, not the direct effects of a change in the federal funds target. A decrease in the federal funds rate generally leads to lower unemployment, which may shift the Phillips curve in the short run, but this is not the immediate effect of the policy change itself.

A decrease in the federal funds target is expected to lower, not increase, the nominal interest rates. This is contrary to the fundamental principles of monetary policy, which state that a reduction in the target rate aims to stimulate the economy through lower borrowing costs.

Typically, a decrease in the federal funds rate leads to a depreciation of the dollar, as lower interest rates make it less attractive for foreign investors. An appreciating dollar would result from higher interest rates, which is opposite to the expected outcome of a decrease in the federal funds target.