Potential Dollar Decline Linked to Federal Reserve Testimony

According to Odaily, ING analyst Francesco Pesole has indicated that the U.S. dollar may experience further depreciation if Federal Reserve Chair Jerome Powell suggests additional interest rate cuts during his testimony to Congress at 22:00 UTC+8 tonight. Pesole noted that the risk of rate cuts has increased following support from Federal Reserve Governors Waller and Bowman for a potential reduction as early as July. Any shift in Powell's cautious stance on rate cuts could be perceived as a sign that U.S. President Donald Trump's pressure for rate reductions has compromised the Federal Reserve's independence. This perception might lead to a significant decline in the dollar's value.