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Mitsubishi UFJ: The Federal Reserve's late interest rate cut may lead to a weaker dollar.
Gate News bot message, Mitsubishi UFJ analyst Derek Halpern pointed out in a report that the Federal Reserve (FED) may need to support the economy by cutting interest rates later this year, which could lead to a weakening of the dollar.
He stated that the pause in interest rate cuts by the Federal Reserve (FED) may last until the summer, and the market does not expect another rate cut before September. This means that the Federal Reserve (FED) may lag significantly behind other G10 central banks in restoring interest rates to a neutral level that neither stimulates nor hinders economic growth. The Federal Reserve (FED) will then need to take more easing measures, which we believe will become a factor in suppressing the dollar later this year.
Source: Jin Shi