HSBC economist Paul Mackel said in a note that unless the Fed surprises with a
rate hike, this week's policy decision is unlikely to provide fresh upside for
the dollar. Fed chair KEVIN WARSH has acknowledged inf is above target and
reiterated a commitment to price stability; if the meeting merely reflects those
views, the dollar is unlikely to move significantly because markets have already
priced a hike later this year. Mackel added some market participants are
contemplating a surprise hike akin to February 1994; if markets view such a
surprise as prudent and welcome it, it would boost the dollar.
