Dollar Dances Around 99.70 Amid Fed Division

The Federal Reserve is facing growing divisions among its members over monetary policy, leaving the dollar's trajectory uncertain. On August 5, San Francisco Fed President Mary Daly and Fed Governor Lisa Cook shared their views on the policy path at separate events.

Daly 'fully supports' last week's decision to hold rates steady at 3.50%-3.75% and advocated for a wait-and-see approach before the September meeting. She believes that supply-side shocks affecting the U.S. economy will not have a lasting impact on inflation, as businesses currently have limited ability to pass higher input costs onto consumers.

Cook, however, warned that she would be willing to support raising interest rates if U.S. inflation remains too high. 'If inflation does not begin to cool down, I am prepared to act as necessary by raising rates to address it,' she said.