The U.S. dollar approached two-week highs on Tuesday morning after Atlanta Federal Reserve Bank President Dennis Lockhart said he predicts the U.S. central bank will raise interest rates at the October or December FOMC meeting.
The U.S. Federal Reserve on Friday left the door open to a September interest rate hike even while several central bank officials acknowledged that turmoil in financial markets, if prolonged, could delay monetary policy tightening.
Crude oil prices are still rising despite the fact that that Atlanta Federal Reserve President Dennis Lockhart told the Wall Street Journal that the economy is ready for its first rate hike in September. Those comments drove the dollar index to its highest level since April putting downward pressure on most commodities, but not oil-- at least not yet.
The U.S. central bank shouldn’t be hasty in dropping a pledge to keep interest rates low for a “considerable time” to avoid premature policy tightening, said Federal Reserve Bank of Atlanta President Dennis Lockhart.