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JP Morgan’s forecast for the dollar indicates the currency will weaken gradually over the coming months, not collapse suddenly. The bank expects the dollar to lose a few more percentage points against major currencies by year-end, with risks tilted to the downside. What’s driving the dollar’s decline according to JP Morgan includes trade policy uncertainty, tariff rollouts, and also fiscal concerns about potential Congressional legislation that could substantially increase the budget deficit. Despite fears of a crisis surrounding the dollar, the firm’s Analysis shows the currency falling represents a significant adjustment rather than an existential threat. At the time of writing, the dollar still accounts for 60% of foreign exchange reserves and 85% of SWIFT settlements, which protects its reserve status even as weakness continues. Also Read: JP Morgan Sees Opportunity After Rate Cut as US Dollar Softens JP Morgan’s Dollar Forecast And Insights On Decline...

Federal Reserve Chairman Jerome Powell says that current market and economic conditions could allow for an interest rate cut soon. In his speech at the Fed’s annual conclave in Jackson Hole, Wyoming, the Fed Chair cited “sweeping changes” in tax, trade and immigration policies. The result is that “the balance of risks appears to be shifting” between the Fed’s twin goals of full employment and stable prices. Thus, future cuts are possible. JUST IN: Fed Chair Jerome Powell suggests current conditions 'may warrant' interest rate cuts. pic.twitter.com/Ogn5NsxHOz — Watcher.Guru (@WatcherGuru) August 22, 2025 Powell noted that compared to the state of the economy during his speech last year, unemployment is lower and the labor market is in better condition. He went on to indicate that these conditions allow “us to proceed carefully as we consider changes to our policy stance.” “Nonetheless, with policy in restrictive territory, the baseline outlook and the shifting balance of risks ...