The market expects the Fed to cut interest rates by a further 36 basis points by December 2025
On December 28, in an environment of insufficient liquidity, the US dollar remained stable. Many traders are still on holiday during the holiday period, and there are no important data releases on the US economic data calendar on Friday. Since November 5, when Trump won the presidential election, the US dollar index has risen by more than 4%. Trump's proposed policies, including trade tariffs and tax cuts, are expected to push up inflation and limit the Federal Reserve's room for rate cuts. Data shows that the market expects the Federal Reserve to cut rates by a further 36 basis points by December 2025.
