Economist Shivaan Tandon: The Fed may cut interest rates more than other countries

Capital Economics said the dollar could fall further in the coming years as it remains relatively expensive and faces the impact of unfavorable interest rate differentials and reduced safe-haven demand. Economist Shivaan Tandon said in the report that the Federal Reserve is likely to cut interest rates more than other countries, which means that interest rate differentials may continue to be unfavorable to the United States. "We also expect risk appetite to remain strong, which suggests that the dollar will continue to be under pressure." Despite concerns about a recession, the US economy appears to be on track for a soft landing. Capital Economics expects the dollar index DXY to fall to 98 by the end of 2025. (Jinshi)