Central Banks
Strong Dollar Seen Hurting US Outlook and Even Tilting Fed Path
- Economists expect impact on Fed policy after greenback’s surge
- Fed can’t escape being central banker to world, economists say
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A strong dollar is likely to weigh negatively on the US economic outlook and could alter how high the Federal Reserve ultimately raises interest rates, economists surveyed by Bloomberg said.
Nearly half of the economists said that international fallout from a strong dollar was either somewhat likely or very likely to spill back to the US over the next 18 months and affect monetary policy. Just 28% saw the currency strength as unlikely to have any impact.