Dollar steadies as Waller argues for more rate hikes, inflation up next
TLT•The dollar edged higher after Federal Reserve Governor Christopher Waller called for a rate hike next month, with markets fully pricing in a December increase. Economists polled by Reuters expect October headline inflation of 3.9% and core inflation of 2.8% year over year.
1. Dollar edges higher
The dollar nudged up on Tuesday after Waller said the Federal Reserve should raise short-term borrowing costs next month even if inflation cooled in October. He said the central bank should consider a half-point increase if inflation worsened.
2. Inflation in focus
Economists polled by Reuters expect headline consumer inflation to rise to 3.9% and core inflation to 2.8% year over year in October. Analysts said a stronger reading could strengthen expectations for further rate hikes and support the dollar, while a downside surprise could extend recent selling momentum.
3. Currency moves
The euro fell 0.1% to $1.1215 and the pound lost 0.15% to $1.3423. The dollar gained about 0.2% against both the yen, trading at 158.2, and the Swiss franc, at 0.8209.
