Powell speech: will the dollar find support in the hawks’ rhetoric?

The U.S. dollar is collapsing, this week, as investors take stock of the global economy, not just the United States. The USD has fallen victim to improving risk sentiment, which has helped the Euro, which has extended its rebound from the five-year low hit last week, and has put more distance between the common currency and parity with the American dollar.

However, in what could throw dollar bulls a lifeline, Federal Reserve Chairman Jerome Powell answers Wall Street Journal questions about the US economic outlook and its implications for the labor market. , inflation and central bank policies.

The Federal Reserve will “continue to push” to tighten US monetary policy until it is clear that inflation is slowing, Fed Chairman Jerome Powell said on Tuesday.

“What we need to see is inflation coming down in a clear and convincing way and we’re going to keep pushing until we see it,” Powell said at a Wall Street Journal event. “If we don’t see that we will have to consider moving more aggressively” to tighten financial conditions.

Featured Statements

• We know it’s time for the Fed to focus on bringing down inflation.
• We have the tools and the decision to lower inflation.
• No one should doubt our determination.
• We need to see inflation come down convincingly.
• Continued rate hikes are appropriate.
• Broad support at the FOMC to have 50 basis points on the table in the next two meetings.
• That said, if the economy performs as we expect, 50 bps will be on the table.
• It is very difficult to think about giving future guidance.
• The economy is highly uncertain, as are external events.
• Markets are pricing in a series of rate hikes.
• We like to work with expectations.
• It has been good to see the markets react to what we say.
• Financial conditions have generally tightened considerably.
• What we need is for growth to come down from high levels.
• We need the offer to have a chance to catch up.
• We need growth to come down to a level that remains positive.
• By the standards of central bank practice, we are moving as fast as we have in several decades.
• We need to see clear and convincing evidence that inflation is coming down.
• If we don’t see it, we’ll have to act more aggressively.
• We need to see clear and convincing evidence that inflation is coming down.
• If we do, we can slow down the rate of uploads.
• The underlying strength of the US economy is really good right now.
• The labor market is extremely strong.
• This year’s growth remains at very healthy levels.
• Consumer balance sheets are healthy.
• We are well positioned to support a tighter policy.
• We are expeditiously raising rates to a more normal level, we will reach it in the fourth quarter.
• We don’t know where the neutral level is.
• We’re going to look at financial conditions meeting by meeting, data by data, financial conditions, the economy and financial health.
• Let’s see the impact of our actions on the economy.
• We really need to see clear and convincing evidence that inflation is coming down.
• If we have to go beyond neutrality, we will not hesitate.
• We will continue to raise rates until we see inflation come down, there will be no question about that.
• We will continue until we are in a place where financial conditions are appropriate and inflation is coming down.
• Financial conditions haven’t tightened this quickly in a long time.
• In hindsight, it would have been better to raise rates earlier.
• Inflation is too high.