đ” Will the Fed Cut Rates When the Dollar Strengthens?
A stronger USD usually signals high U.S. interest rates and investor confidence in the economy â meaning the Fed is unlikely to cut rates soon. A strong dollar also helps ease inflationary pressure.
However, if the USD peaks and economic growth slows, the Fed may begin a rate-cut cycle to support the economy.
đ In short:
âą Strong USD â Fed keeps rates high.
âą Weak USD & slowing growth â Fed may cut rates.