Fed39;s Powell says 50 bps hike on the table for May meeting
Markets start building bets for three straight 50 bps hikes
ECB39;s Lagarde says bank may need to cut growth outlook further

NEW YORK, April 21 Reuters The U.S. dollar rose from a oneweek low on Thursday after Federal Reserve Chair Jerome Powell all but confirmed a half a percentagepoint tightening at the policy meeting next month, including consecutive rate increases this year.

The dollar index , which gauges the strength of the currency versus a basket of rivals, gained 0.2 to 100.53, after trading lower for most of the session. The index has advanced 2.3 so far this month, on pace for its best monthly gain since June 2021.

Powell said a halfpoint interest rate increase will be on the table when the Fed meets on May 34 to approve the next in what is expected to be a series of rate increases this year. 

Fed funds futures have started to price in bets of three straight 50 basispoint hikes starting with next month39;s policy meeting, with an implied rate of about 2.71 in December.

Rising fears over an increasingly aggressive Fed policy posture weighed heavily on Treasuries, especially at the short end, and the pop in rates knocked Wall Street lower, Action Economics said in its blog after Powell39;s comments. However, the dollar was the beneficiary.

The euro slid from a more than oneweek high after European Central Bank President Christine Lagarde said the ECB may need to cut its growth outlook further…