Analysis: The abnormal trend of the US dollar may be another reason why Powell remains cautious about interest rate cuts

According to foreign media analysis, under the influence of tariff policies, Federal Reserve Chairman Powell insists on waiting for more evidence before cutting interest rates to show that inflation has not surged. In addition, another reason why Powell needs to act cautiously is that the trend of the US dollar is extremely abnormal. Before the tariff policy was announced, the market generally expected that tariffs would strengthen the US dollar. But the reality is that the US dollar is depreciating. Since Liberation Day on April 2nd, the US dollar index has fallen by 6.8%, and has fallen by about 10.4% so far in 2025, making it the worst year to date performance in at least 25 years. The persistent weakness of the US dollar is more likely to have a significant impact on the economy, including consumer prices. (Golden Ten)