Ella 
Obviously positive for the dollar, the Fed may raise rates to 6.5%.
James Bullard’s tenure as president of the St. Louis Fed may be over, but his rhetoric has lost none of its power. Economists at Commerzbank analyzed the dollar’s performance.
Speaking on the sidelines of an International Monetary Fund (IMF) meeting, Bullard discussed how inflation remains high and could even rise again. In that case, he said, the Fed would have to raise interest rates further. To 6% or 6.5%.
So while the world is debating how fast the Fed will cut rates again, Bullard is presenting us with a very different and decidedly positive scenario for the dollar. Is this odd? Given that: (a) the current inflationary shock is unique; and (b) the environment in which central banks find themselves – of their own making – is also unique, nothing seems impossible.
The considerations of Bullard and others may not be outrageous, but they are currently becoming a factor supporting the dollar.
