The US Dollar (USD) gave back some of its recent strong gains. The economists of BBH They analyze the prospects of the Dollar.
Growth prospects for the US economy are encouraging
The Dollar may rise because we do not expect the Fed to cut rates by 75 basis points this year.
The growth outlook for the US economy is encouraging, financial market conditions are very loose, and the February PCE deflator is expected to remain too sticky for the Fed to make cuts in the near term.
Curiously, the president of the Atlanta Fed, Raphael Bostic (voter in 2024), noted Friday that now foresees a single interest rate cut “at the end of the year”instead of two, as it is less confident in the path of US inflation.
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.
