Meanwhile, ADP private payrolls increased by just 37,000, missing forecasts of 115,000 and marking the weakest job growth since March 2023. These figures have heightened concerns over labor market softness and broader economic resilience.
Trump Calls for Rate Cuts as Fed Maintains Caution
President Donald Trump has ramped up public pressure on the Federal Reserve, urging Chair Jerome Powell to cut rates immediately. Trump criticized Powell on Truth Social, highlighting Europe’s multiple rate cuts and calling Powell “unbelievable” for lagging behind.
In contrast, Minneapolis Fed President Neel Kashkari acknowledged some labor market softening but emphasized that more data is needed before altering policy. He advocated a measured approach, signaling no urgency for a rate move.
Outlook for the Dollar Remains Uncertain
With tariff risks, weak economic data, and diverging Fed signals, the outlook for the U.S. dollar remains clouded. While DXY holds around 98.80, markets are increasingly cautious ahead of Friday’s Nonfarm Payrolls report, which may determine whether the dollar breaks lower or finds near-term support.
