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Analyst: Federal Reserve Faces Pressure, US Dollar May Face High Volatility in 2026

Summary: According to sources, Jane Foley, the foreign exchange strategy director at Rabobank, stated in a report that the US dollar is expected to face greater volatility this year as the Federal Reserve faces pressure. Market concerns arise from the possibility of the Federal Reserve losing its independence due to government demands for rate cuts and ...

According to sources, Jane Foley, the foreign exchange strategy director at Rabobank, stated in a report that the US dollar is expected to face greater volatility this year as the Federal Reserve faces pressure. Market concerns arise from the possibility of the Federal Reserve losing its independence due to government demands for rate cuts and pressure on current Chairman Powell. However, Foley also noted that some believe other FOMC members could provide a counterbalance to a dovish Fed chairman in the context of persistently high inflation. Foley suggested that uncertainty surrounding the Federal Reserve's future credibility may exert downward pressure on the US dollar, but not to the extent of triggering a free fall.

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