Dollar Rises After Powell's Cautious Tone on Rate Cuts

Core Viewpoint - The dollar is rising following Federal Reserve Chair Jerome Powell's cautious remarks regarding future interest-rate cuts, indicating uncertainty in monetary policy direction [1][2]. Group 1: Federal Reserve's Stance - Powell expressed concerns about the risks to both employment and inflation, refraining from providing clear signals about potential rate cuts in the upcoming October meeting [1][2]. - He warned that aggressive rate cuts could leave inflation unaddressed, potentially necessitating future rate hikes [2]. - Conversely, maintaining high rates for an extended period could lead to a softening labor market [2].