The U.S. dollar spiked higher against its major trading partners in the European session on Thursday, as short-term U.S. treasury yields rose in reaction to comments from Federal Reserve Chair Jerome Powell, signaling a liftoff in interest rates in March and the prospects of an aggressive policy tightening in the subsequent meetings this year.
Powell stuck a more hawkish tone at his press conference, saying that the central bank has "quite a bit of room" to raise interest rates without threatening the labor market.
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Business News
May 15, 2026 15:25 ET Apart from the confirmation of Kevin Warsh as the next Fed chair, the main news on the economics front this week included key price data from the U.S. and the first quarter economic growth figures from major economies. Both consumer prices and producer costs have started to reflect the effect of supply shocks due to the Middle East conflict. In Europe, GDP data was in focus, while inflation data from China dominated the news flow in Asia.