After the Federal Reserve's interest rate cut, the US dollar recorded its worst daily performance since September

【After the Federal Reserve’s rate cut, the US dollar records the worst single-day performance since September】On Wednesday, Federal Reserve Chair Jerome Powell emphasized labor market risks while downplaying inflation concerns in his speech, resulting in the dollar’s worst performance in nearly three months. The US dollar index closed down 0.4%, the largest decline since September 16, following the Fed’s decision to cut interest rates by 0.25 percentage points. US bank strategist Alex Cohen stated, “Compared to previous forecasts, Powell’s tone on the labor market is less optimistic.” He added that the Fed Chair’s comments on labor and inflation triggered the dollar’s decline. Macro strategist Edward Harrison said, “As the Federal Reserve’s stance diverges from increasingly hawkish central banks around the world, a weakening dollar should be guided by bond and interest rate differentials.” (Jin10)