Updated
Updated · Bloomberg · Jul 2
Morgan Stanley Challenges 2% June Dollar Surge as Fed Inflation Fight Lifts Rate Bets
Updated
Updated · Bloomberg · Jul 2

Morgan Stanley Challenges 2% June Dollar Surge as Fed Inflation Fight Lifts Rate Bets

2 articles · Updated · Bloomberg · Jul 2

Summary

  • Morgan Stanley, Credit Agricole and TD Securities are pushing back against the growing consensus that the dollar will keep strengthening.
  • A 2% jump in the Bloomberg Dollar Spot Index in June — its best month since the Iran war began — has fueled that bullish view, and the gauge rose again at the start of July.
  • Fed expectations are driving the rally after Chairman Kevin Warsh said on June 17 that the central bank remains committed to fighting inflation, reinforcing bets on high or even higher interest rates.

Insights

With oil prices now falling, is the Fed's aggressive anti-inflation policy steering the U.S. economy toward an unnecessary downturn?
The new Fed Chair favors less communication. How will global markets navigate this new era of policy uncertainty and potential abrupt shifts?