Currencies
Fed Hike Risks Cloud JPMorgan’s Call for a Weaker Dollar in 2026
Traders in the market for fed funds futures see the central bank’s current interest rate cycle bottoming out by early 2027.
Photographer: Al Drago/BloombergJPMorgan Chase & Co. expects the dollar to soften next year on easier US monetary and fiscal policy, but cautioned that accelerated bets on future interest-rates hikes could challenge that view.
After forecasting that the dollar would rally after the inauguration of Donald Trump as president this year, the bank’s currency strategists led by Meera Chandan and Arindam Sandilya had to pivot quickly as the greenback delivered its worst first-half performance in five decades instead.