The dollar index (DXY00) today is up +0.11%. The dollar is seeing support from a +4.3 bp rise in the 10-year T-note yield to 4.496%. The dollar is also seeing support from hawkish comments today by several Fed officials and reduced expectations for Fed rate cuts.
Fed Governor Michelle Bowman issued mildly hawkish comments today when she said the Fed must maintain its inflation credibility “by proceeding carefully and deliberately to achieve our 2% goal.” She said the Fed needs to keep rates where they are “for a bit longer.” Also, Atlanta Fed President Raphael Bostic told Reuters in an interview that he expects only one 25 bp rate cut this year, coming late in the year. Dallas Fed President Lorie Logan said today, “It’s just too early to think about cutting rates.”
