DXY Decline Momentum Slows as Powell Signals Cautious Fed Approach

DXY Momentum Slows as Fed’s Powell Signals Cautious Rate Cut Outlook

The US Dollar Index (DXY) has shown a slight slowdown in its downward momentum, trading near 96.90 despite weaker-than-expected US economic data including the ISM Manufacturing, Prices Paid, and JOLTS Job Openings reports.

At the ECB forum in Sintra, Fed Chair Jerome Powell reiterated a cautious stance, emphasizing the Fed's intention to "wait and learn more" about tariff impacts on inflation before implementing rate cuts. While Powell left the possibility of a July rate reduction open, he did not commit to a specific timeline, maintaining flexibility depending on economic developments.

On fiscal matters, the Senate narrowly passed the One Big Beautiful Bill Act (OBBBA) with a 51-50 vote. The Congressional Budget Office (CBO) updated its projections, estimating that the revised budget bill will add approximately $3.3 trillion to the US national debt over the next decade, up from the prior estimate of $2.8 trillion.

Related Articles on Tredu:

• How Fed Policy Influences the US Dollar Index
• Impact of Tariffs on Inflation and Interest Rates
• US Budget Bill and National Debt Outlook