State Street Bank: Fed Rate Cuts May Exceed Expectations, US 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 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 and conduct 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 that 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)