State Street Bank: The Fed May Cut Rates More Than Expected, US Dollar Could Plunge 10% This Year

According to Odaily, State Street Corp. strategist Lee Ferridge stated that once the next Federal Reserve Chair takes office, the Fed's rate cuts may exceed market expectations, and the US dollar could fall by 10% this year. Currently, traders expect the Fed to resume lowering interest rates around June, with at least two 0.25 percentage point cuts by the end of the year. However, in an interview during the TradeTech FX conference in Miami, Ferridge suggested that officials may have room for a third rate cut in 2026. This view is partly based on his belief that Powell's successor will face pressure from Trump to lower borrowing costs. (Golden Ten Data)