Dollar ascends after hawkish Fed decision
Good morning. Risk sentiment is improving across the financial markets and the dollar is holding near a seven-week high after the Federal Reserve fired the starting gun on a new monetary tightening cycle and oil prices pulled back, easing tensions in bond markets. In yesterday’s unanimous decision, the Fed’s rate-setting committee raised borrowing costs by a quarter of a percentage point, saying the move would help return inflation to target in a “timelier” way. Chair Kevin Warsh pinned the decision on a strong economy, a stubbornly slow disinflation process, and geopolitical tensions that are lifting commodity prices—appearing to signal that...