Powell speech signals Fed easing as dollar and franc move

Global currency markets remained focused on Federal Reserve Chair Jerome Powell’s Jackson Hole address as traders weighed the prospects for policy easing and the broader impact of tariffs. The dollar traded with mixed momentum, while the Swiss franc briefly firmed against the greenback as investors weighed Swiss inflation and the likelihood of further SNB action. In late Asian trade, the USDCHF pair rose to a fresh weekly high around 0.8100, even as the US dollar index hovered near the high end of its recent range and traders awaited Powell’s remarks.

In the lead up to Powell’s speech, the dollar’s trajectory reflected a balance between expectations of a cautious stance from U.S. policy makers and ongoing concerns about tariff effects on inflation and growth. Market participants have closely watched the Federal Open Market Committee minutes for signals on how long policymakers intend to hold rates steady while waiting for greater clarity on tariffs’ impact. Officials, including Powell, have underscored the need for time to assess the magnitude and persistence of higher tariffs before deciding on easing.

Switzerland added its own layer of uncertainty. Swiss inflation ran 0.2...