Ill-advised move. The U.S. Dollar is still over-valued, yet raising interest rates further props it up (and that makes foreign imports cheaper). How do you figure the dollar is overvalued? The last two weak dollar policy periods ended in disaster. The first was the Carter administration and the other was the second term of the Reagan administration, which ended in the crash of 1987.
"How do you figure the dollar is overvalued?"
The market's correction mechanism for trade imbalances is currency devaluation. If a trade imbalance persists, the currency hasn't been devalued enough.
So to answer your question, I figure that the Dollar is still overvalued because our trade imbalance hasn't materially shrunk.