This week has seen a group of Federal Reserve members spreading the central bank’s message that US inflation is elevated and that interest rates will need to be ramped up further to try and dampen domestic price pressures. Various board members voiced a common message that the central bank is nowhere close to ending rate hikes, that another 75bp rate increase is still on the cards, and that interest rates will likely remain higher for longer in the battle against inflation. This hawkish pushback by the Federal Reserve is propping up the US dollar after its recent bout of weakness.
