Dollar Index slips as Fed Chair Warsh won't prejudge October
Fed Chair Warsh's last word before the quiet period was that he doesn't prejudge meetings, and the Dollar Index is lower on it, though the drop stalled near 101.60 twice. It fell from just above 102.00 to about 101.85 in one five-minute bar as he spoke, then slid to its lowest since October 1.
Fed Chair Jerome Warsh refrained from predicting the Fed's decisions for October and December, which contributed to a decline in the Dollar Index, despite a slight increase in September industrial production. The index fell from just above 102.00 to approximately 101.85 within a five-minute period following Warsh's comments at a press conference.
It reached its lowest level since October 1 before reaching the 101.60 mark twice. Warsh emphasized that the Fed would wait until the designated meetings to make decisions, stating that the Fed was moving away from previewing its actions. The anticipation of an interest rate hike in October and December diminished, as seen in the decrease in bets on an October 27-28 hike from nearly 28% to around 16%.
This drop in expectations coincided with a decline in the Dollar Index. Warsh also expressed his approval of simultaneous rate hikes around the world, noting that for the Dollar Index, it is preferable when all countries' central banks raise rates.
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