Economics

Dollar’s Surge Goes From Road Block to All-Clear Signal for Fed

  • Trade-weighted U.S. currency index approaches 12-year high
  • Financial markets remain stable, giving Fed comfort to hike

Is a Fed Rate Hike in December Definite?

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What a difference a year makes.

When the dollar surged around this time last year, the stock market tumbled and oil prices fell into a tailspin, forcing Federal Reserve officials to scale back plans for the pace of interest-rate increases. Yet if anything, the currency’s strength the last couple months may encourage policy makers to tighten this time around.