According to BlockBeats, Ebury's Head of Market Strategy, Matthew Ryan, stated that the expectation of two rate cuts by the Federal Reserve in 2025 remains the baseline forecast for most policymakers. However, due to significant uncertainties surrounding tariffs, there may not be enough confidence to substantially alter their views.
There is a risk that a minority of officials might consider the rate cuts this year to be less than previously anticipated, potentially leading to a decision to reduce rates by only 25 basis points in 2025. The hawkish dot plot and Federal Reserve Chair Jerome Powell's emphasis on the lack of urgency to lower rates could provide some support for the U.S. dollar later this week.