Economist Shivaan Tandon: The Federal Reserve's rate cuts may exceed those of other countries

ChainCatcher news, according to Jinshi reports, Capital Economics stated that the dollar may further decline in the coming years, as its valuation remains relatively high and is facing the impact of unfavorable interest rate differentials and reduced safe-haven demand.

Economist Shivaan Tandon said in the report that the Federal Reserve's rate cuts may exceed those of other countries, which means that the interest rate differential may continue to be unfavorable for the U.S. "We also expect risk appetite to remain strong, indicating that the dollar will continue to be under pressure." Despite concerns about an economic recession, the U.S. economy seems poised for a soft landing. Capital Economics expects that by the end of 2025, the dollar index DXY will fall to 98.