The dollar moved higher in early Wednesday trading following what markets are reading as a moderately hawkish message on interest rate from Federal Reserve Chairman Jerome Powell.
Speaking at an event in Providence, RI, on Tuesday, Powell talked about the “challenging” situation of accelerating inflation and weakening labor markets and stressed there is no “risk free path” for the central bank to follow.
He offered no hints as to the Fed’s next policy move, adding that “our policy is not on a preset course. We will continue to determine the appropriate stance based on the incoming data, the evolving outlook, and the balance of risks.”
