State Street Expert Predicts Potential for Three Fed Rate Cuts with 10% Dollar Decline Risk

Fed Rate Cut Expectations Rise as Dollar Faces Pressure

According to State Street strategist Lee Ferridge, the Federal Reserve could have room to implement three rate cuts by 2026, a scenario that exceeds current market expectations. This potential shift could expose the dollar to a decline of up to 10%.

Market consensus currently anticipates the Fed will restart its easing cycle around June this year, completing at least two 25-basis-point cuts before year-end.

Political Influence May Shape Monetary Policy

Significantly, the successor to current Chair Jerome Powell might face policy pressure from former President Donald Trump, who has repeatedly called for more accommodative monetary measures.

• Analysis from State Street strategist Lee Ferridge
• Rate cut potential exceeds current forecasts
• Dollar faces notable downward pressure