MUFG: Delayed Fed Rate Cuts Could Weaken the Dollar
Mitsubishi UFJ analyst Derek Halpenny pointed out in a report that the Federal Reserve may need to cut interest rates later this year to support the economy, which could lead to a weaker dollar. He stated that the Fed's pause in rate cuts might last until summer, with the market not expecting another rate cut before September. This implies that the Fed may significantly lag behind other G10 central banks in restoring rates to a neutral level that neither stimulates nor hinders economic growth. This means the Fed will need to take more accommodative measures, which we believe will be a factor suppressing the dollar later this year. (Jin10)
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