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Bullard Joins Mester On Watching USD Impact

FED
  • St Louis Fed’s Bullard joins another ’22 voter in Mester noting the impacts from USD strength, which has seen relatively little attention in FOMC commentary.

*BULLARD NOTES USD STRONG; FED TAKES SPILLOVER EFFECT IN ACCOUNT - bbg

*MESTER: DOLLAR VALUE SET IN MARKETS BUT WE STUDY IMPLICATIONS - bbg

*MESTER: FED SETS POLICY FOR US BUT AWARE OF WIDER ENVIRONMENT - bbg

  • Despite the US economy's relatively closed nature compared to G10 counterparts, the 19% appreciation in DXY in the YTD should increasingly weigh on inflation.

DXY indexSource: Bloomberg

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