Analysis: The unusual dollar trend may be another reason why Powell is cautious about rate cuts
Odaily News According to foreign media analysis, under the influence of the tariff policy, Federal Reserve Chairman Powell insisted on waiting for more evidence before cutting interest rates to show that inflation has not soared. In addition, another reason why Powell needs to be cautious is that the trend of the US dollar is extremely abnormal. Before the tariff policy was announced, the market generally expected that tariffs would strengthen the US dollar. But the reality is that the US dollar is depreciating. Since Liberation Day on April 2, the US dollar index has fallen 6.8%, and has fallen about 10.4% so far in 2025, the worst year-to-date performance in at least 25 years. The persistent weakness of the US dollar is more likely to have a significant impact on the economy, including consumer prices. (Jinshi)
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