Barclays analysts stated in a report that the dollar may decline further in the near term; however, given the relative resilience of the U.S. economy, the decline may be limited. Volatility in the bond market is creating an unfavorable environment for the dollar, while missteps in U.S. trade policy, shifts in rhetoric around tariffs, or weak data could further weaken the dollar. However, analysts expect that the dollar will not depreciate significantly. They noted that the recent downgrade of tariffs suggests that the economic losses for the U.S. may be smaller than previously feared. Aside from short-term concerns about the U.S. budget deficit, Trump's fiscal stimulus plan is more likely to strengthen the dollar than his choice of fiscal tightening.