On Wednesday, Federal Reserve Chairman Powell emphasized labor market risks while downplaying concerns about inflation. The US dollar recorded its worst performance in nearly three months. The US dollar index closed down 0.4%, the biggest drop since September 16, after the Federal Reserve decided to cut interest rates by 0.25 percent. Bank of America strategist Alex Cohen said, “Compared to previous predictions, Powell's attitude towards the labor market is less optimistic.” He added that the Federal Reserve Chairman's comments on labor and inflation triggered a fall in the dollar. Macro strategist Edward Harrison said, “As the Fed does not keep pace with increasingly hawkish central banks, the weak dollar should be guided by bonds and interest rate spreads.”

On Wednesday, Federal Reserve Chairman Powell emphasized labor market risks while downplaying concerns about inflation. The US dollar recorded its worst performance in nearly three months. The US dollar index closed down 0.4%, the biggest drop since September 16, after the Federal Reserve decided to cut interest rates by 0.25 percent. Bank of America strategist Alex Cohen said, “Compared to previous predictions, Powell's attitude towards the labor market is less optimistic.” He added that the Federal Reserve Chairman's comments on labor and inflation triggered a fall in the dollar. Macro strategist Edward Harrison said, “As the Fed does not keep pace with increasingly hawkish central banks, the weak dollar should be guided by bonds and interest rate spreads.”