WARSH WON’T PRE-JUDGE OCTOBER OR DECEMBER AS DXY SLIPS TO 101.82
The US Dollar Index (DXY) was losing 0.22% at 101.82 at the time of writing, as markets assessed comments from Fed Chair Kevin Warsh on the outlook for monetary policy.
Warsh said he does not believe in pre-judging Fed meetings and does not want to indicate what he might do for the remainder of 2026. He said policymakers will make their judgments at the October and December meetings, with output, employment and inflation helping shape the policy assessment.
Warsh also said that, since the September FOMC meeting, the global economic picture has broadly developed as expected. He pointed to structural growth and a surge in investment while emphasizing that the coming meetings will provide an opportunity to assess the latest economic developments.
The comments come as markets continue to assess the Federal Reserve’s policy outlook without a fixed signal for the October or December decisions. The FXS Speechtracker scored the speech 5.4/10, below its historical average of 6/10.
The FXS Fed Sentiment Index remained unchanged at 127.51.
For market participants, the key factors remain DXY at 101.82, the October and December FOMC meetings, incoming inflation data, employment conditions, economic output, Fed communication and the evolving policy outlook, which may provide further context for the near-term direction of the US Dollar.
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