Now: Dollar Index Peak in 2 Years

What we know so far about Fed

Last Thursday, we knew some information regarding the next rate hike from the speech by Fed Chairman, Jerome Powell. In his statement, there is a certain level of certainty that the rate will be hike by the FOMC meeting on May 4 and May 5. The exact value of the hike is not stated but the market prediction is around 50 to 75 basis point.

On Friday, The Cleveland Fed President, Loretta Mester state that she wants to go from neutral to 2.5% by the end of the years. Although she rejects the notion of having a 75-basis point interest rate hike in a single session, she agrees on the multiple rate hike of 50-basis points starting from May.

St. Louis Fed President James Bullard on other hand confirmed that Fed is behind the curve but not to the critical level. He added that the central bank has hiked 0.75% before and the shock on the market was tolerable.

The President of San Francisco Fed, Mary Daly stated that Fed will most likely raise interest rate by 0.50% multiple time this year. She added that at the end of the year, Fed want a total of 2.5% rate hike.