Dollar Gains as Fed Signals Patience
The U.S. dollar index rose above 99.5 on Thursday, recovering some of the previous session’s losses as investors continued to assess the Federal Reserve’s monetary policy outlook in light of its shift in trade policy.
In a speech on Wednesday, Fed Chair Jerome Powell warned that tariffs could fuel inflation and slow growth, complicating the Fed’s dual mandate of achieving price stability and maximum employment. Powell also signaled that the Fed was in no rush to cut interest rates, citing the need for more clarity before taking any policy action.
Meanwhile, investors awaited signs of potential trade negotiations between the U.S. and China, with Beijing reportedly open to talks under certain conditions. On the economic front, U.S. retail sales surged in March, marking the strongest growth in more than two years and highlighting continued consumer resilience despite broader economic uncertainty.
Source: Trading Economics
