Strategist: A few Federal Reserve officials may lower their interest rate cut expectations for this year, enough to reverse the situation

ChainCatcher news, Ebury's market strategy director Matthew Ryan stated that two rate cuts by the Federal Reserve in 2025 remain the baseline forecast for most policymakers. Given the significant uncertainty surrounding tariffs, they may not have enough confidence to substantially change their views.

However, there is a risk that a minority of officials believe this year's rate cuts will be lower than previously expected, which could be enough to shift the outlook, leaning towards only a 25 basis point cut in 2025. The hawkish dot plot and Powell's emphasis on the lack of urgency to lower rates may provide some room for the dollar to strengthen later this week.