Deutsche Bank’s Saravelos Says Fed Chair Kevin Warsh Aims to Avoid Commenting on This Year’s Policy

Deutsche Bank Global Head of FX Research George Saravelos said Fed Chair Kevin Warsh aims to “avoid expressing views on this year’s monetary policy as much as possible” to minimize the impact on market pricing. According to Odaily, Saravelos said that if Warsh can do so, the U.S. dollar is likely to weaken and “the path for summer carry trades will fully open.” In a report sent to clients on Wednesday, Deutsche Bank said it is “hard not to be bullish” on risk assets as the limited market impact from the Iran war fades. The bank said global economic growth forecasts have changed little since last year, and that this resilient growth outlook is “not a particularly positive signal for the U.S. dollar.” Deutsche Bank also said Europe has “the greatest potential” for upward revisions to growth expectations in the coming months.