Analyst: If the Fed Resists Rate Cut Bets, the Dollar May Rise

BlockBeats reported on May 6 that Monex Europe analysts stated in a report that if the Federal Reserve dampens market expectations for a rate cut at Wednesday's meeting, the dollar may rise. They indicated that the market expects a rate cut in June, but recent U.S. data suggests that the Federal Reserve is unlikely to ease policy before the fourth quarter.

As tariffs will further increase price pressures, inflation remains high. The labor market remains robust, contrary to expectations of an economic slowdown. This leaves the Federal Reserve with "little room for action other than delaying market expectations for easing and emphasizing the resilience of underlying economic conditions."