Blog Posts, Forex

Dollar Recap: Greenback Sold Off Despite Fed Rate Hike

The Dollar sold off sharply this week as the Trump administration launched its first volley in a possible trade war with China and despite the Fed raising the Fed Funds Rate to 1.75% from 1.50% on Wednesday. Furthermore, Raphael Bostic, President of the Atlanta Federal Reserve Bank  said in remarks prepared in a speech for the Knoxville Economic Forum on Friday that, “If the economy evolves roughly as I suspect, I will likely support further increases over the course of the year”. Bostic also said that, “With the economy operating near its potential and inflation finally approaching the long-run target, it is appropriate, in my opinion, for monetary policy to be moving toward a more neutral stance”.