BREAKINGVIEWS-Central banks’ noise helps dollar – and Joe Biden
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The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
By Francesco Guerrera
LONDON, March 28 (Reuters Breakingviews) - In February, traders’ hopes of rate cuts by the Federal Reserve sent the currency lower. But it has risen 1.8% in March, partly due to policymakers’ mixed messages. Until the fog clears, the greenback will rule forex markets. That curbs US inflation and may benefit the President.
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CONTEXT NEWS
The U.S. Federal Reserve’s preferred gauge of inflation may have picked up pace in February, data to be released on March 29 is expected to show.
The Personal Consumption Expenditures Price Index is likely to have grown 0.4% month-on-month, compared with 0.3% monthly growth in January, according to economists polled by Reuters. That would bring the PCE’s annual rate of increase to 2.5% from 2.4% in January. The Fed targets a 2% inflation rate.
(Editing by Lauren Silva Laughlin and Aditya Sriwatsav)
((For previous columns by the author, Reuters customers can click on GUERRERA/
francesco.guerrera@thomsonreuters.com; Reuters Messaging: francesco.guerrera.thomsonreuters.com@reuters.net))
