UniCredit: Fed strategy under Waller’s leadership is crucial for the dollar

They stated that the Federal Reserve is likely to keep interest rates unchanged at Wednesday’s first meeting chaired by Waller, and abandon its dovish stance. They said rising price pressures will require the Federal Reserve to raise rates, but this will increase friction with the Trump administration, which supports rate cuts. However, they also noted that if the Federal Reserve is complacent about inflation, it will cause credibility issues and damage the US dollar. The DXY dollar index fell 0.2% to 99.513.