, Columnist
Higher-for-Longer Is Pushing Dollar Power to Limit
Powell makes clear that the Fed won’t cut soon. The dollar is turning the screws, and markets and other central banks can’t keep up.
One stands out.
Photographer: Samsul Said/BloombergThis article is for subscribers only.
To get John Authers' newsletter delivered directly to your inbox, sign up here.
Higher for longer it definitely is. Rates markets had grasped this before Federal Reserve Chair Jerome Powell took a Q&A with Tiff Macklem, his opposite number at the Bank of Canada, and said that he could keep rates where they are for “as long as needed.” Any chance of imminent cuts must now rely on some sudden financial crisis, so hopes have more or less been abandoned.