Analysis: The unusual movement of the dollar may be one of the reasons for Powell's caution regarding interest rate cuts

ChainCatcher news, according to Jinshi citing foreign media analysis reports, under the influence of tariff policies, Federal Reserve Chairman Powell insists on waiting for more evidence before cutting interest rates to indicate that inflation is not soaring.

In addition, another reason Powell needs to proceed with caution is that the movement of the dollar is extremely unusual. Before the announcement of the tariff policy, the market generally expected that tariffs would strengthen the dollar. However, the actual situation is that the dollar is depreciating.

Since "Liberation Day" on April 2, the dollar index has fallen by 6.8%, and it has dropped by about 10.4% so far in 2025, making it the worst year from the beginning of the year in at least 25 years. The persistent weakness of the dollar is more likely to have a significant impact on the economy (including consumer prices).