State Street Corp. strategist Lee Ferridge stated that once the next Federal Reserve chair takes office, the Fed's rate cuts may exceed market expectations, and the dollar could fall by 10% this year.
Currently, traders expect the Fed to resume rate cuts around June and to implement at least two 0.25 percentage point cuts by the end of the year.
However, Ferridge, speaking during an interview at the TradeTech FX conference in Miami, believes that officials will have room for a third rate cut in 2026.
This view partly stems from his belief that Powell's successor will face pressure from Trump to lower borrowing costs