US Federal Reserve (Fed) Chairman Jerome Powell’s concerns over inflation and readiness for a 0.50% rate-hike aren’t worthless as the gauge of price pressure in the world’s largest economy rallied to the highest since November 18, 2021.
Read: Powell Quick Analysis: US economy is on fire, war could impact policy both ways, dollar to rise
That said, US inflation expectations, as measured by the 10-year breakeven inflation rate per the St. Louis Federal Reserve (FRED) data, flashed a 2.71% figure by the end of Wednesday’s North American session.
In addition to the inflation fears and likely hawkish performance of the Fed in March, which in turn could propel the USD, increasing probabilities of a 0.50% rate hike in March per CME’s FedWatch Tool also keep the greenback buyers hopeful.
On the same line were fears concerning the Russia-Ukraine crisis even as the latest chatters hint at the ceasefire discussions amid likely peace talks on Thursday.
It should be noted, however, that Fed’s Powell has doubts over the next rate-hike and mostly cheered 0.25% lift. As a result, the US dollar bulls look for clarity of moves.
Read: Forex Today: Markets recovered their optimism, but will it last?