TD Securities strategists say a Fed hold on Wednesday could prompt a reflexive
dollar weakening. They expect rates to be left unchanged, with HAMMACK and Logan
dissenting in favor of a hike. Any short-term dollar softness is likely capped
because markets still price further Fed hikes through the remainder of 2026. TD
expects the Fed to offer little forward guidance, reiterate its commitment to
price stability, and note recent declines in inf while stressing inf remains
elevated.
