Dollar Holds Firm as Fed Outlook Weighed

2025-09-18 01:51 By Jam Kaimo Samonte 1 min. read

The dollar index hovered above 97 on Thursday after rebounding sharply in the prior session, as investors reassessed the Federal Reserve’s policy outlook.

On Wednesday, the Fed delivered a widely expected quarter-point rate cut, while signaling two more reductions this year but only one in 2026, pushing back against market expectations for two or three cuts next year.

Chair Jerome Powell struck a cautious tone, framing the move as “risk management” amid labor market weakness, while stressing there is no need to rush easing.

Notably, newly appointed Governor Stephen Miran was the sole dissenter, backing a larger 50 bps cut, resulting in fewer splits than anticipated.

Elsewhere, the Bank of Canada also trimmed rates by 25 bps, while the Bank of England and Bank of Japan are expected to keep policy unchanged this week.



News Stream
DXY Holds Pullback
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