Powell Channeling His Inner Volcker Risks Pushing Dollar Higher
- ICE Dollar Index is still a third below record high in 1985
- Most central bankers like to be compared to Volcker: Westpac
Jerome Powell
Photographer: Ting Shen/BloombergThis article is for subscribers only.
The dollar could rally a lot further if Federal Reserve Chair Jerome Powell really is determined to channel a much-admired inflation-busting predecessor, Paul Volcker.
While the Bloomberg Dollar Spot Index climbed to a record Tuesday, Intercontinental Exchange Inc.’s gauge of the greenback was around a third lower than its 1985 all-time high, at the latter stages of Volcker’s tenure. The Fed’s own index of the US currency’s real-effective exchange rate was about 11% off its March peak that year.