TD Securities: If the Federal Reserve remains cautious about rate cuts, the US dollar may rise

Jinse Finance reported that TD Securities strategists stated in a report that if the Federal Reserve cuts interest rates by 25 basis points next week but remains cautious about further rate cuts, the US dollar should rise. They noted that as concerns about economic growth become critical, the market expects consecutive rate cuts. However, the Federal Reserve may temper these expectations by emphasizing potential inflation risks. "Powell can signal that the Fed is not on a predetermined path of rate cuts and will continue to monitor upcoming data to assess risks." This would boost the US dollar. However, they also stated that in the long term, the US dollar will still decline, and any rebound is a good selling opportunity.