Dollar Rallies as Warsh Talk Fuels Hawkish Fed Bets
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The dollar jumped sharply after remarks linked to Fed Chair Warsh stoked expectations of a firmer policy stance, pushing the currency toward a solid weekly advance against major peers.
Markets quickly repriced rate expectations, with traders now leaning toward a slower pace of easing than previously assumed. That shift has been the primary driver behind the greenback's broad-based strength this week.
Gold's slide in reaction to the same comments underscores how sensitive risk assets remain to Fed leadership signals, reinforcing the dollar's role as the standout performer heading into the weekend.