State Street Bank: The Federal Reserve's rate cut may exceed expectations, and the US dollar could plummet by 10% this year

SmartContractAuditor · 2026-02-10T19:54:54+00:00

Bank of New York Mellon strategist Lee Ferridge stated that after the new Federal Reserve Chair takes office, the rate cut could exceed market expectations, and the dollar is expected to decline by 10% this year. Traders anticipate the Federal Reserve will start cutting rates in June and will cut at least twice by the end of the year. Ferridge believes there may be a third rate cut in 2026, partly driven by pressure from Trump to lower borrowing costs.

SmartContractAuditor

2026-02-10 19:54:54

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Odaily Planet Daily reports that State Street Corp. strategist Lee Ferridge stated that once the next Federal Reserve Chair takes office, the Fed’s rate cuts could exceed market expectations, and the dollar may decline by 10% this year. Currently, traders expect the Fed to resume rate cuts around June and to implement at least two 0.25 percentage point cuts by the end of the year. However, during an interview at the TradeTech FX conference in Miami, Ferridge believed that officials have room to make a third rate cut in 2026. This view partly stems from his belief that Jerome Powell’s successor will face pressure from Trump to lower borrowing costs.

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