Institution: The dollar may rise, as tariff risks are unlikely to change the stance of the Federal Reserve

According to Jinshi Data reports, Matthew Ryan, the head of market strategy at Ebury, stated that the US dollar may rise as the risks brought by potential US tariffs are unlikely to change the Federal Reserve's cautious stance on interest rate cuts in Wednesday's meeting. Fed Chairman Jerome Powell might say that intensified trade protectionism could lead to inflation remaining high for a longer period and slow down US economic growth.

However, Powell is more likely to focus on recent economic activity and strong performance in the labor market. Ultimately, we believe that Powell will clearly indicate to the market that further interest rate cuts are underway, although he is not eager to cut rates further.