2025.10.2918:48:49UTC+00Dollar Strengthens After Chair Powell Comments

The dollar index surged to over 99.2 on Wednesday, reaching its highest point since mid-month, following the Federal Reserve's anticipated 25 basis point rate cut. However, during the regular press conference, Fed Chair Jerome Powell indicated that a further rate cut in December is not a certainty. Consequently, market-based projections for such a reduction fell to approximately 88%, down from around 90% earlier in the day. Investors have generally expected an additional 25 basis point cut in December, aligning with the Fed's projections from September. At today's meeting, two officials expressed dissent: Governor Miran advocated for a more substantial half-point cut, whereas Kansas City Fed President Jeff Schmid preferred maintaining current rates. Additionally, investors are closely monitoring an upcoming meeting between U.S. President Trump and Chinese President Xi Jinping, which is anticipated to establish a framework potentially halting increased U.S. tariffs and China's rare earth export controls. The dollar has notably strengthened against the pound, euro, Swiss franc, and yen.