Mitsubishi UFJ: The Fed's rate cut may come too late, potentially leading to a weaker dollar

ChainCatcher news, according to Jinshi reports, Mitsubishi UFJ analyst Derek Halpern pointed out in a report that the Federal Reserve may need to support the economy by cutting interest rates later this year, which could lead to a weaker dollar.

He stated that the Fed's pause in rate cuts may last until summer, and the market does not expect another rate cut before September. This means that the Fed may significantly lag behind other G10 central banks in restoring interest rates to a neutral level that neither stimulates nor hinders economic growth. This suggests that the Fed will need to take more accommodative measures, which we believe will become a factor suppressing the dollar later this year.