ING’s Turner Expects Dollar to Stay Firm if Fed Chair Warsh Stresses Price Stability

ING analyst Chris Turner said the U.S. dollar should remain firm if Federal Reserve Chair Kevin Warsh focuses on price stability in remarks at the European Central Bank forum in Sintra, Portugal. According to ChainCatcher, Turner wrote in a report that Warsh’s emphasis on inflation control would likely support the currency. The report noted that Warsh, at his first meeting after taking office as Fed chair in June, stressed the need to bring inflation back to the 2% target. Turner forecast that Warsh’s speech could help lift the U.S. Dollar Index back into the 101.7–101.8 range.