Analysis: US Dollar's Unusual Movement or Another Reason for Powell's Caution on Rate Cuts
BlockBeats News, July 24th: Foreign media analysis reported that under the impact of tariff policies, Federal Reserve Chairman Powell insisted on waiting for more evidence of stable inflation before cutting interest rates. In addition, another reason Powell needs to proceed with caution is the extremely unusual behavior of the U.S. dollar.
Before the announcement of the tariff policy, the market generally expected that tariffs would strengthen the U.S. dollar. However, the reality is that the U.S. dollar has depreciated. Since the "Liberation Day" on April 2nd, the dollar index has fallen by 6.8%. Year-to-date, it has fallen by about 10.4% as of 2025, making it the worst-performing year since at least 25 years. The sustained weakness of the U.S. dollar is more likely to have a significant impact on the economy (including consumer prices). (FXStreet)
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