The dollar has strengthened since Monday after Federal Reserve official, James Bullard, said that the central bank needs to move quickly to raise interest rates to 3.5% this year and that large increases shouldn’t be ruled out.
This has confirmed to the markets that US interest rates will continue to be raised this year and is a sign that the US economy is recovering. Rising treasury yields have also supported the greenback this week.
There will be more speeches from Fed officials today and tomorrow, Federal Reserve Chair, Jerome Powell, will speak. The markets will be listening to see if any comments support Bullard’s remarks.
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