USD – The dollar jumped from one-week lows on Thursday after Fed’s Bullard suggested a faster pace of reducing the central bank’s asset purchases would be needed as he was skeptical that inflation would moderate. Bullard stated that he wanted to have tapering finished by the end of Q1 2022.
Commenting on Bullard’s remarks, Mizuho Securities stated that “The market will likely discount what Bullard said, in part because he’s a non-voting member of the Fed’s policy-setting committee, but his voice is heard in the room and you have to assume therefore it does have some impact… I don’t think we’re likely to reverse (the dollar’s trend higher) too quickly.”
Of course, the focus will remain in the FOMC into the week’s close, with Fed Chair Powell speaking tomorrow at the Jackson Hole Symposium.
Commenting on Bullard’s remarks, Mizuho Securities stated that “The market will likely discount what Bullard said, in part because he’s a non-voting member of the Fed’s policy-setting committee, but his voice is heard in the room and you have to assume therefore it does have some impact… I don’t think we’re likely to reverse (the dollar’s trend higher) too quickly.”
Of course, the focus will remain in the FOMC into the week’s close, with Fed Chair Powell speaking tomorrow at the Jackson Hole Symposium.