The US dollar index closed at its highest level since April 2020 following further bullish comments form the Fed. James Bullard thinks the Fed Funds rate should be at 3.5% by the year end which would require more than a 50-bps hike at each Fed meeting this year. Yet in an attempt to not sound too hawkish (which would take some doing) he said the base case is not for any hikes to be above 50 bps, so assuming all meetings deliver a 50-bos hike then the Fed are on track for rates to be at a target of 3.0% - 3.25%. In doing so he thinks the Fed can tame inflation without hurting the labour market, and still sees ... (full story)