State Street’s Ferridge Sees 10% Dollar Drop on Three Fed Cuts

The dollar may fall 10% this year as there’s a risk the Federal Reserve will cut interest rates more deeply than markets anticipate once the next chair of the central bank takes over, according to State Street Corp.’s Lee Ferridge.

Traders expect that the Fed will resume lowering interest rates around June and deliver at least two quarter-point reductions by year-end. But Ferridge, a strategist at the bank, sees scope for officials to deliver a third reduction in 2026. That’s in part on the view that current Chair Jerome Powell’s successor will face pressure from President Donald Trump to reduce borrowing costs.