Analyst: The Federal Reserve is under pressure, and the US dollar may face high volatility in 2026

According to Odaily, Jane Foley, Head of FX Strategy at Rabobank, stated in a report that with increasing pressure on the Federal Reserve, the US dollar is expected to experience greater volatility this year. The market is concerned that the Federal Reserve may lose its independence due to government demands for rate cuts and pressure on current Chairman Powell. However, Foley pointed out that there are also views suggesting that, with inflation still elevated, other members of the FOMC could serve as a counterbalance to a Fed Chair inclined toward rate cuts. Foley noted that uncertainty surrounding the Fed's future credibility could exert downward pressure on the US dollar, "but it is unlikely to trigger an uncontrolled decline." (Golden Ten Data)