The dollar's rally will be mitigated in the coming months because the Fed's extraordinary monetary policy will not result in sustained inflation, they said at the Reuters Global Markets Forum.
Fed officials have said that the The central bank will ignore the price pressures expected to build in the coming months and let the economy "heat up" to encourage more hiring.
"The most likely outcome is that after a peak in the spring (boreal ) close to 3.5% for the headline CPI and 2.5% for the core PCE, inflation will decline, while it will remain above 2% for longer than at any other time in the last decade, "he said Gregory Daco, chief US economist at Oxford Economics.
The risk of inflation getting out of control is limited, as rising prices would in turn restrict demand, and the Fed may eventually rely on its set of tools, including future guidance and control of the yield curve. performance, to control runaway prices.
"The inflation we're seeing is not stagnant wage / price spiral inflation, it's recovery and transitory inflation," said Jeffrey Halley, senior markets analyst for Asia Pacific in OANDA.
Halley expects the dollar to end the year lower and the yen to exceed 112 units per dollar, up from 108.99 today.
There is a real possibility that the yield Bond growth continues, but the Fed doesn't have to raise interest rates to fight it, said Kristina Hooper, Invesco's chief global market strategist.
By Divya Chowdhury and Lisa Pauline Mattackal, from Reuters agency.