The dollar strengthens amid expectations of cautious Fed rate cuts 💼
The dollar has experienced significant strengthening as markets bet on more cautious interest rate cuts by the Federal Reserve. Data from the London Stock Exchange Group suggests a cumulative cut of 38 basis points is expected by December 2025. The Fed recently reduced rates by 25 basis points but has indicated a slower pace for future adjustments. Analysts at Deutsche Bank foresee a possible cut in January of next year, which could lead to a prolonged pause in policy easing until 2025.
