The dollar is no longer an excuse for the Fed not to raise rates

The strong dollar is no longer an excuse not to raise rates. Shortly before the Federal Reserve raised interest rates in December, Fed governor Lael Brainard gave a speech about why it should proceed cautiously. Brainard's reasons included the strong dollar, which had seen a 15% rally over the previous year and a half. This argument noted that the strong dollar was putting downward pressure on the neutral rate — or the interest rate at which inflation would accelerate — requiring the Fed to keep its official Fed Funds rate low. In an ... READ MORE