The dollar index (DXY00) today is up by +0.57%. The dollar is climbing today on positive carryover from Wednesday when Fed Chair Powell said higher goods prices are feeding through to inflation and that the FOMC expects inflation to continue to build into next year, which may limit how much more the Fed can cut interest rates. The dollar added to its gains today after T-note yields rose when US weekly jobless claims fell more than expected, and the Sep Philadelphia Fed business outlook survey rose more than expected to an 8-month high, hawkish factors for Fed policy.
The dollar is being undercut by concerns over Fed independence, which could prompt foreign investors to dump dollar assets as President Trump attempts to fire Fed Governor Cook, and by Stephen Miran’s intention to be a Fed Governor while still technically holding his White House job on the Council of Economic Advisors.
