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Analysis: Unusual Dollar Trend Could Be Another Reason for Powell's Caution on Rate Cuts
Summary: Contrary to expectations, foreign media analysis reports that under the influence of tariff policies, Federal Reserve Chairman Powell is waiting for more evidence of non-soaring inflation before cutting rates. Another reason for Powell's cautious approach is the extremely unusual trend of the dollar. Prior to the announcement of tariff policies, the market generally expected tariffs ...
Contrary to expectations, foreign media analysis reports that under the influence of tariff policies, Federal Reserve Chairman Powell is waiting for more evidence of non-soaring inflation before cutting rates. Another reason for Powell's cautious approach is the extremely unusual trend of the dollar.
Prior to the announcement of tariff policies, the market generally expected tariffs to strengthen the dollar. However, the reality is that the dollar is depreciating. Since Liberation Day on April 2, the dollar index has fallen by 6.8%, and has dropped by about 10.4% year-to-date in 2025, marking the worst performance in at least 25 years. The persistent weakness of the dollar is more likely to have a significant impact on the economy (including consumer prices).
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Link: Analysis: Unusual Dollar Trend Could Be Another Reason for Powell's Caution on Rate Cuts [Copy]
