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Analysis: The unusual dollar trend may be another reason why Powell is cautious about rate cuts

according to foreign media analysis, under the influence of tariff policies, Federal Reserve Chairman Powell insists on waiting for more evidence before cutting interest rates to show that inflation is not soaring. In addition, another reason Powell needs to be cautious is the extremely unusual trend of the US dollar. Before the announcement of the tariff policy, the market generally expected tariffs to strengthen the US dollar. However, the actual situation is that the US dollar is depreciating. Since "Liberation Day" on April 2, the US dollar index has fallen by 6.8%, and has fallen by about 10.4% year-to-date in 2025, the worst performance in at least 25 years from the beginning of the year. The persistent weakness of the US dollar is more likely to have a significant impact on the economy (including consumer prices).

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