Analysis: The unusual movement of the dollar may be another reason why Powell remains cautious about interest rate cuts.

Jin10 data July 24, according to foreign media analysis reports, under the influence of tariff policies, Fed Chairman Powell insists on waiting for more evidence before cutting interest rates to indicate that inflation is not skyrocketing. In addition, another reason why Powell needs to proceed with caution is that the movement of the dollar is extremely unusual. Before the announcement of the tariff policy, the market generally expected that the tariffs would strengthen the dollar. However, the reality is that the dollar is depreciating. Since “Liberation Day” on April 2, the dollar index has fallen by 6.8%, and it has declined by about 10.4% so far in 2025, making it the worst year from the beginning of the year in at least 25 years. The persistent weakness of the dollar is more likely to have a significant impact on the economy (including consumer prices).