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2 Dec 2015
Fed’s Lockhart is uncomfortable with further rise in USD
FXStreet (Mumbai) - After having said the case for liftoff is compelling, Fed’s Lockhart expressed concerns regarding the strength in the US dollar.
Lockhart said the USD has risen pretty substantially since mid-2014, still a greater strength in the dollar may not be priced in yet. The policymaker further added that the Fed’s divergence from other major central banks could push the dollar higher still.
However, Lockhart expressed confidence that a 25bps hike would not lead to a significant drop in the consumption (domestic demand).
Lockhart said the USD has risen pretty substantially since mid-2014, still a greater strength in the dollar may not be priced in yet. The policymaker further added that the Fed’s divergence from other major central banks could push the dollar higher still.
However, Lockhart expressed confidence that a 25bps hike would not lead to a significant drop in the consumption (domestic demand).