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Strong dollar seen hurting US economic outlook, even tilting Fed path

Chair Jerome Powell and his colleagues are trying to cool the economy and ease price pressures by deliberately tightening US financial conditions

US dollar, Dollar
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Photo: Bloomberg

Steve Matthews and Sarina Yoo | Bloomberg
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.

The dollar has risen about 13% this year against other major currencies amid geopolitical tensions following Russia’s invasion of Ukraine and as the Fed

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First Published: Oct 29 2022 | 9:20 PM IST

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