The dollar index (DXY00) on Friday finished little changed, down by -0.01%. Friday’s rally in the S&P 500 to a new record high curbed liquidity demand for the dollar. Also, lower T-note yields on Friday undercut the dollar. Comments from New York Fed President Williams were negative for the dollar when he said he expects consumer spending growth to slow this year. The dollar has support from lowered expectations for Fed rate cuts as the chances for a Fed rate cut at the April 30-Mai FOMC meeting dropped to 23% from 75% a month ago.
New York Fed President Williams said he expects consumer spending growth to slow this year and "at some point, it will be appropriate for the Fed to pull back on restrictive monetary policy, likely later this year."
