US Dollar: Fed hike keeps upside risks – BBH
Brown Brothers Harriman’s (BBH) Elias Haddad notes that the US Dollar (USD) is holding gains after a hawkish Federal Reserve (Fed) hike, with 10-year Treasury yields retreating and equities firmer. The FOMC raised rates by 25bps and signaled more work is needed to bring inflation back to target.
Brown Brothers Harriman's Elias Haddad reports that the US Dollar (USD) is benefiting from a hawkish Federal Reserve (Fed) rate hike. The FOMC increased rates by 25 basis points, signaling that more work is needed to bring inflation back to target. This hawkish stance comes as 10-year Treasury yields retreat and S&P 500 futures rise.
Fed Chair Kevin Warsh emphasized that inflation is still too high and has persisted for too long, with underlying inflation trends not improving significantly. The Fed's unanimous decision to raise rates reflects a global tightening trend, but the stronger US growth outlook keeps risks for the USD skewed upward.
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