Fed boss sought to rein in investor expectations for an early interest-rate cut in a 60 Minutes interview that aired Sunday.
The dollar index DXY shot sharply higher to start the week, pushing to a 3-month peak of 104.60. Driving the bullish narrative were comments from Federal Reserve chair Jay Powell. He laid out the Fed’s potential rate-cut plan and dampened the market’s hopes of an early interest-rate trim.
Stacked up against a basket of six rival currencies, the dollar picked up a hefty 0.7% gain on Monday to notch a high last seen in mid-November. The buck remained well-bid in early Tuesday deals, floating just under yesterday’s high. Outsized job growth for January added fresh buying momentum.
Speaking at an interview with CBS’s 60 Minutes, the Fed boss pushed back against a priced-in March cut. He noted that Fed officials still expected at least three rate cuts in 2024, each by 0.25%. The interview took place after the Fed chair’s post-policy decision conference, but before Friday’s release of January’s scorching jobs report.