The dovish shifts from Bowman and Waller led to a drop in the US dollar as they signal a possible rate cut. This trend could indicate a MAGA takeover of the Fed, aligning with Trump’s preference for low interest rates. The market is now pricing in a higher chance of a rate cut in July and significant cuts by 2026, putting pressure on the US dollar and causing fluctuations in currency pairs like USD/JPY and the euro.
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