The dollar index rose toward 105.5 on Thursday after sliding 1% in the previous session, as traders assessed hawkish remarks from Federal Reserve policymakers emphasizing the central bank’s commitment to keep raising interest rates to convincingly tame inflation. In the latest developments, San Francisco Fed President Mary Daly warned in an FT interview that it is too early to “declare victory” in the fight against inflation, and that consumer prices remain “far too high and not near our price stability goal.” Minneapolis Fed President Neel Kashkari also said that he expects the central bank to raise its policy rate to 3.9% by year-end and to 4.4% by end of 2023, while Chicago Fed President Charles Evans indicated that US rates will top out at 4% next year. Those remarks came as the headline inflation rate slowed to 8.5% in July 2022 from an over 40-year high of 9.1% in June amid a significant drop in gasoline prices.
