The US dollar ended Wednesday mid-range as markets digested the Federal Reserve’s latest minutes and speculation about a potential Trump-appointed replacement for Governor Cook.
The minutes revealed many Fed members anticipate a delayed one-off price increase from tariffs, with some warning of risks to inflation expectations. Chair Powell and the majority maintain a neutral policy stance, expecting tariff-driven price hikes in July and August data despite White House pressure for rate cuts.
While some members, likely Waller and Bowman, pushed for earlier policy adjustments due to labour market concerns, most remain focused on inflation risks, supporting a modest dollar uptick. Governors Waller and Bostic avoided monetary policy discussions, focusing instead on crypto.
Attention now turns to Powell’s upcoming Jackson Hole speech.
Exclusive FX research from LMAX Group Market Strategist, Joel Kruger
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