U.S. Dollar Poised for Gains as Fed Signals Prolonged High Rates, Analysts Say

Per CoinTelegraph, Monex Europe analysts suggest the U.S. dollar could rally if the Federal Reserve tempers hopes for a near-term rate cut at its next meeting. Markets are eyeing a potential rate reduction in July, but strong U.S. economic indicators point to the Fed maintaining tight policy until at least the third quarter.

Rising trade tariffs are likely to intensify inflationary pressures, keeping prices elevated. The job market continues to show strength, defying forecasts of a cooling economy. This leaves the Fed with little room to maneuver, likely pushing it to delay rate cut expectations and highlight the economy’s underlying vigor.$BTC