State Street Bank: Fed Rate Cuts May Exceed Expectations, Dollar Could Plunge 10% This Year

Odaily News State Street Corp. strategist Lee Ferridge stated that once the next Federal Reserve Chair takes office, the Fed's rate cuts could exceed market expectations, potentially leading to a 10% decline in the dollar this year. Currently, traders anticipate that the Fed will resume lowering interest rates around June, with at least two 0.25 percentage point cuts by year-end. However, Ferridge, in an interview on the sidelines of the TradeTech FX conference in Miami, believes officials have room for a third rate cut in 2026. This view partly stems from his belief that Powell's successor will face pressure from Trump to lower borrowing costs. (Jin10)