Mitsubishi UFJ Predicts Limited Dollar Recovery Despite Fed Rate Cut

According to Odaily, Mitsubishi UFJ Financial Group has indicated that the U.S. dollar is unlikely to achieve a sustained recovery even if the Federal Reserve cuts interest rates by 25 basis points this week. Analyst Lee Hardman from Mitsubishi UFJ stated in a report that a 25 basis point rate cut by the Federal Reserve might lead to further rate reductions in future meetings, especially if the labor market continues to show weakness. He noted that this scenario suggests it is only a matter of time before the Federal Reserve needs to accelerate the pace of rate cuts.