US dollar hits 18-month high as hotter inflation revives Fed rate hike concerns
Stronger US consumer prices and surging gasoline costs lifted the greenback, while concerns over French debt weighed on the euro.
Fed’s Collins backs another rate hike by year-end, flags three inflation pressures
Collins’ remarks reinforce expectations of another quarter-point rise before year-end, with recent Fed commentary leaning towards December rather than this month’s meeting. That should keep front-end Treasury yields supported and limit room for a sustained dollar pullback while hikes stay in play. For oil traders, the significance is the feedback loop: further gains in crude and refined products tied to the Middle East war now feed straight into Fed hike expectations, so energy strength carries rates and dollar consequences. A softer run of data would be the main thing to cool that pricing. --- Earlier: Fed Williams: Sees no need for rate hike in 2027 at this time --- Collins sees a resilient economy as giving the Fed licence to keep tightening, with war-driven fuel costs the clearest reason inflation won’t get back to target on its own. Summary: Boston Fed President Susan Collins expect
