Analysts: The Federal Reserve is under pressure, and the dollar may face high volatility in 2026.

Jane Foley, head of foreign exchange strategy at Rabobank, said in a report that the dollar is expected to face greater volatility this year as pressure on the Federal Reserve rises. Markets are concerned that the Fed may lose its independence due to government demands for interest rate cuts and pressure on current Chairman Powell. However, Foley pointed out that some argue that with inflation still high, other FOMC members could provide a check on a Fed chairman who favors rate cuts. Foley stated that uncertainty surrounding the Fed's future credibility may put downward pressure on the dollar, "but not to the point of triggering an out-of-control decline." (Jinshi)