FX.co ★ Dollar Steady, Fed Minutes Awaited

The US dollar remained stable at 98 on Tuesday, hovering near its lowest mark since early October. Investors are eagerly awaiting the December meeting minutes of the Federal Reserve to gain better insight into future interest rate trends. Currently, the market anticipates two more rate cuts in 2026. However, the Federal Reserve officials appear divided on this issue, with the majority predicting only a single reduction in the forthcoming year. Another focal point for investors is the upcoming appointment of the new Federal Reserve Chair, as President Trump is expected to announce Jerome Powell's successor early next year. This decision is anticipated to have a significant impact on the outlook for monetary policy. Thus far, the dollar has dropped 9.6% this year, marking its most substantial decline since 2017. This downturn in the greenback is attributed to multiple factors, including expectations of future Fed rate cuts, a narrowing of interest rate differentials with other major currencies, unpredictable tariff policies under President Trump, and rising concerns regarding fiscal deficits and the independence of the Federal Reserve.