The U.S. dollar climbed higher on Tuesday amid expectations the Federal Reserve will start tightening its monetary policy to rein in inflation.
Remarks by Federal Reserve Governor Lael Brainard at a Minneapolis Fed conference that the central bank would start reducing its balance sheet at a "rapid pace" as soon as the May meeting, pushed up the dollar.
"Given that the recovery has been considerably stronger and faster than in the previous cycle, I expect the balance sheet to shrink considerably more rapidly than in the previous recovery," Brainard said in prepared remarks.
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Forex News
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.