Outside chance that the Fed will implement another step is positive for the USD – Commerzbank

Economists at Commerzbank discuss whether further rate hikes are possible and their implications for the US Dollar.

Number of FOMC members over the past days in favor of ‘skipping’ the June meeting

“We had a number of FOMC members over the past days who were in favor of ‘skipping’ the June meeting (so no rate hike), but who do not want this to be understood as the end of the rate cycle. Governor Christopher Waller was the last to do so yesterday. Of course, the market had doubted the story spread by the Fed officials for some time. So there might have been a number of market participants who heard the comments but did not believe them.”

“It is nonetheless positive for the Dollar that there is still an outside chance that the Fed will implement another step. And that skipping a meeting in June does not mean that this opportunity will not arise.”