Analyst: The Federal Reserve is under pressure, and the US dollar may face high volatility in 2026

Odaily Planet Daily reports that Jane Foley, Head of FX Strategy at Rabobank, stated in a report that with increasing pressure from the Federal Reserve, the US dollar is expected to experience greater volatility this year. The market is concerned that the Fed may lose independence due to government demands for rate cuts and pressure on current Chair Powell. However, Foley pointed out that there are also views suggesting that, in the context of still-high inflation, other FOMC members may serve as a check against a Fed Chair inclined to cut rates. Foley said that uncertainties surrounding the future credibility of the Federal Reserve could put downward pressure on the dollar, “but not to the point of triggering an out-of-control decline.” (Jin10)