According to Huoxing Finance, on September 16, Lee Hardman, an analyst at Mitsubishi UFJ, stated in a report that the U.S. dollar may struggle to strengthen unless the Federal Reserve solidifies market expectations for a prolonged interest rate hiking cycle in its upcoming decision. LSEG data shows that the market has nearly fully priced in a 25-basis-point hike this Wednesday and an anticipated cumulative increase of nearly 95 basis points by September 2027. Hardman noted that this pricing sets a high bar for the Fed to signal a more "hawkish" rate path than expected. He added that the Fed’s communication is unlikely to clearly convey how much further tightening will be needed.
Mitsubishi UFJ Analyst: Fed's Decision May Fail to Boost the Dollar
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Summary
Fed news on September 16 indicates that the U.S. dollar may face difficulty rising unless the Fed signals a prolonged rate-hiking cycle, according to Mitsubishi UFJ analyst Lee Hardman. LSEG data shows markets anticipate a 25-basis-point hike this week and a total of 95 basis points by 2027. Hardman stated that the Fed must adopt a more hawkish stance than expected to boost the dollar. Traders are also monitoring altcoins amid shifting monetary policy.
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