(Reuters) – The Dollar rose against major currencies on Monday, broadly supported by Federal Reserve officials saying additional interest rate hikes are likely given that inflation remains persistently high and the labor market is still tight.
Fed Governor Michele Bowman said on Monday additional interest rate hikes will likely be needed to lower inflation to the U.S. central bank’s 2% target.
Bowman, in remarks prepared for delivery to a “Fed Listens” event in Atlanta, said she backed the latest rate increase last month because inflation remains too elevated, and job growth and other indications of activity show the economy has continued expanding at a “moderate pace.”
New York Fed President John C. Williams said, in an interview with the New York Times published on Monday, the central bank will need to keep the restrictive stance for some time. Maintaining that stance is going to be determined by the underlying fundamentals “driving, supply and demand in the economy, inflation,” he added.
In mid-afternoon trade, the dollar gained 0.5% against the yen to 142.45 yen, rising from a one-week low earlier in the session. The dollar was slightly up versus the Swiss franc at 0.8731 francs .
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Source: www.reuters.com
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