Analysts have been expecting the US dollar to leave the market for almost 250 years. They believe that the US dollar has no reason for a rise and may disappear any time.
However, it seems that the greenback is not planning to give up. Recently, the currency surged to its fresh 15-month high. The jump was caused by the publication of the Fed’s reviewed forecast for the key interest rate. The regulator supposes that a hike in the interest rates may occur earlier than expected. The fact is that the US economy is making a sustained recovery, whereas the inflation growth pace is accelerating. Such facts point to positive changes in the US, which allow the country’s authorities to discuss a rise in the benchmark rate. What is more, the US economic situation is so good that the Fed may consider ending the bond-purchasing program. During the press conference, Fed’s Chair Jerome Powell said that inflation could be higher and more persistent than expected due to the unprecedented nature of the economic opening. However, the regulator does not foresee a further increase in the indicator in the following year. Experts think that the accelerating inflation may force the Fed to discuss a possible withdrawal of stimulus measures and higher interest rates.
