Bloomberg: Fed’s Powell could push dollar higher

Source: Reuters

Author: Kevin Buckland

Article: Original article

Publication date: Wednesday, November 30, 2022

The US dollar held near a one-week high on Wednesday as investors braced for comments from Federal Reserve Chairman Jerome Powell today.

All the recent Fed speakers have rejected expectations of a rates' reversal anytime soon. On Monday, New York Fed President John Williams said the central bank needs to press forward with rate rises. Whereas, St. Louis Fed President James Bullard said there is still "a way to go" for policy tightening.

“We expect Powell to speak today about the need for tightening financial conditions, which could cause market participants to reassess the global economic outlook and push the US dollar even higher,” Carol Kong, a strategist at Commonwealth Bank of Australia, wrote in a client note before the Powell’s speech.

Forecast:

Short-term growth of the dollar index.