State Street Bank: The Fed's rate cut may be larger than expected, and the dollar could plummet by 10% this year.

Lee Ferridge, a strategist at State Street Corp., said that once the next Federal Reserve chairman takes office, the Fed's rate cuts may exceed market expectations, and the dollar could fall by 10% this year. Traders currently expect the Fed to resume rate cuts around June and implement at least two more 0.25 percentage point cuts by the end of the year. However, in an interview on the sidelines of the TradeTech FX conference in Miami, Ferridge believes that officials have room for a third rate cut in 2026. This view stems in part from his belief that Powell's successor will face pressure from Trump to lower borrowing costs. (Jinshi)