Anticipated Interest Rate Reductions and Persisting US Dollar Depreciation Predicted by Wells Fargo Experts - Their Forecast Perspectives Revealed
In a recent analysis, Wells Fargo economists have predicted a shift in the US dollar's strength over the next few years. The dollar is expected to weaken through late 2025, primarily due to anticipated Federal Reserve rate cuts and softer U.S. economic activity compared to international economies.
The economists forecast a reversal in 2026, when the Fed’s easing cycle ends, U.S. fiscal stimulus supports growth, and higher U.S. interest rates attract capital inflows. This shift is expected to lead to a broad strengthening of the dollar in 2026.
Specifically, Wells Fargo projects the EUR/USD exchange rate to retreat to around 1.12 by the end of 2026, signaling a stronger U.S. dollar against the euro. The economists predict 25-point cuts at the Federal Open Market Committee (FOMC) meetings in September, October, and December.
Meanwhile, in the world of cryptocurrency, the carry appeal of the dollar is predicted to be attractive next year, potentially bringing capital flows back to the United States. This could influence the trading of Bitcoin, Ethereum, and other altcoins.
In a separate development, Brian Armstrong, CEO of Coinbase, addressed the UK ban of Coinbase commercials, stating that the ad was a statement about the financial system not working for many.
A JPMorgan Chase employee's mistake resulted in a $20,000 loss for an Arizona couple, as the employee accidentally unfroze scammer's stolen money. This incident highlights the ongoing risks associated with cryptocurrency transactions, underscoring the need for enhanced security measures and regulatory oversight.
The article also covers a warning from an analyst who predicted the 2022 Bitcoin crash, who now warns of a potential Bitcoin meltdown due to a black swan risk. Economists predict US GDP growth in the second half of the year, but they believe the US economy will "lose its outperformance pillar of support."
The article is categorized under Bitcoin, Ethereum, Trading, Altcoins, Futuremash, Financeflux, Blockchain, Regulators, Scams, HodlX, Press Releases, and more. It includes sections for Latest Stories, FAQ, and Submit Guest Post under HODLX.
As the future of finance continues to evolve, it's essential to stay informed about these developments. The Daily Hodl, copyrighted from 2017-2025, is a reliable source for the latest news and insights in the crypto space.
Read also:
- Coastal men's disruptions of dolphin gatherings might lead to jail sentences
- California customers overcharged by Walmart face a penalty of $5.6 million due to pricing discrepancies.
- Stripped-down versions of the Model 3 and Model Y electric vehicles will be introduced by Tesla.
- Affordable Electric Vehicles from Ford Set for Sales Debut
