ING economists analyze the outlook for the dollar following statements by Raphael Bostic of the Atlanta Fed
Fed hawks believe there is “contained exuberance”
The Fed is in no rush to lower interest rates. On Monday, Atlanta Fed President Raphael Bostic spoke of “subdued exuberance” in the corporate sector, which could be a problem for inflation if the Fed cuts rates too quickly.
Bostic's comments add to the prevailing view that the Fed is in no rush to cut rates and that this view is likely to be echoed when Fed Chair Jerome Powell testifies before the U.S. Financial Services Committee. House of Representatives on Wednesday.
We doubt the US ISM Services PMI data for February will be a major factor for the market, although a repeat of January's strong release would be positive for the dollar. And we see that the DXY index continues to find support below 104.00.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
