Harker’s Comments Should Increase the Bids for the USD

FED’s member Patrick Harper is out in an interview for Wall Street Journal talking about the monetary policy. He’s making some comments about rate hikes at the moment, which should offer more food for USD bulls to chew on.

The FED hiked interest rates this month by 0.25% and the consensus is for two more hikes this year, which would make three in total. Harker now is projecting three more rate hikes this year, which means four in total.

Harker is sounding hawkish today, which is positive for the USD

The pickup in inflation recently is the reason why he has lifted his forecasts for three more rate hikes this year. Harker also sees some risks from the tariffs that Trump’s administration is introducing. The US Dollar is in charge in the forex market at the moment so these comments should improve the situation for the USD even more.

Harker is not a voting member but he does participate and speak at the FOMC meetings. Also, the inflation price index report will be out in a couple of hours, so we will see if he is right about inflation.