Fed representatives have been consistently saying that interest rates should increase further. The CME FedWatch tool said there is 85.7% chance that the central bank will pursue a quarter-point rate hike in May, and a 25.4% chance of seeing another one in June, which will result in a final rate of between 5.0% and 5.25%.
Fed members John Williams, Christopher Waller, and James Bullard spoke about this a little earlier. Then, on Thursday last week, Michelle Bowman said the same thing.
This scenario of several Fed representatives expressing a united idea influenced and changed many market participants' assumptions about a potential pause in rate hikes.
But despite all these statements, the dollar index, which measures the dynamics of the US currency against six other currencies, fell slightly by -0.12%.
