Be careful of some backlash from the Fed – DBS Bank
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The US Dollar Index (DXY) plunged 4.1% last week, its largest weekly on record. Economists at DBS Bank are closely monitoring comments from US Federal Reserve officials, including Vice Chair Lael Brainard.
“DXY is near the 105 low in August, from which it rallied into the hawkish Fed’s hawkish Jackson Hole Symposium and the September FOMC meeting.”
“The fall in the US Treasury 10Y and 2Y yields to 3.81% and 4.33%, respectively, could invite some backlash from the Fed this week.”
“Today, Fed Vice Chair Lael Brainard should remind markets that the Fed is only debating a smaller 50 bps hike at the December meeting and is looking to peak and pause rates in 2023 above the 4.6% level projected in September.”
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