dollar strength After St. Louis Fed chairman supported interest rate hikes 12 ti

[Jilan Asaad]

dollar strength After St. Louis Fed chairman supported interest rate hikes 12 times this year

The dollar strengthened against the major currencies today. After the chairman of the US Federal Reserve (Fed) St. Louis branch He encouraged the Fed to raise interest rates 12 times this year to curb inflation.

The dollar rose 0.49% to 119.17 yen, while the euro was down 0.15% to 131.30 and 0.64 percent to $1.102. The index measures the dollar's movements against the six major currencies in the basket, up 0.54% to 98.50.

Even though the dollar is stronger today But it is likely to fall this week for the first time in 6 weeks.

St. Louis Fed President James Bullard said the Fed should raise interest rates 12 times this year to show it is serious about fighting inflation. Inflation, which has hit its highest level in 40 years, is affecting people.

Mr Bullard said He wants the Fed to raise interest rates above 3% from near 0% now.

Earlier, Bullard was the only Fed official to vote for the Fed to raise interest rates by 0.50% at this week's meeting. The Fed raised interest rates by 0.25% to 0.25-0.50%, the first rate hike since December 2018.

In addition, Fed officials expect the Fed to raise interest rates six more times, 0.25% each, for the remainder of the year. This will put the short-term interest rate at 1.75-2.00% later this year.

Meanwhile, Fed officials forecast three rate hikes in 2023, but no rate hikes in 2024.