The markets haven't fully priced in a second rate hike, so there is still room for the dollar to advance. Data today look as if they will be strong and support the dollar.
The dollar could fall sharply, though that may be only a temporary phenomenon.
Markets are afraid there might be a sign of stagflation in the U.S. economy.
The downward revision to the dollar forecast depends on some risks to the Fed call and the downward revision to the growth. There are some risks to growth in the fourth quarter, mainly due to the effect of the hurricane.
We think the Fed will keep going to 5 percent by May.
Given the current sentiment in the market, there's probably a greater chance of the dollar rallying on a strong number than the risk of any sort of sell-off if there is disappointment.
The Fed was more hawkish than expected.
The Fed did not change its upbeat view of the U.S. economy. The dollar-bullish trend will continue.
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