On Tuesday (November 1) subsession, the rush high fell back, temporarily traded at 111.39, down 0.18%.
Mohamed El-Erian, chief economic adviser at Allianz, noted that Mr. Powell faces the difficult task of balancing the triple objectives of containing inflation, maintaining economic growth and ensuring financial market stability.
While the Fed is still widely expected to raise interest rates by 75 basis points for the fourth time in a row at its November meeting, it is its communication with markets about its next course of action that will be the focus of attention.
Some investors think the Fed should then slow the pace of rate hikes to protect economic and job growth because of the pressure on global growth, but the opposite view is that with inflation still high, aggressive rate hikes should not be abandoned.
The Fed also faces the challenge of calming investors in stocks and bonds and avoiding volatility in the process, given the excess liquidity pumped into financial markets by sustained policy easing more than a decade ago.
Dollar index pressure: 112.5——115.3 Support: 109—–107.5
