Asian Currencies Slip as Dollar Rebounds Ahead of Fed Rate Decision 
Thailand Economy Faces Competitiveness Challenges as Strong Baht and U.S. Tariffs Pressure Exports 
Dollar Struggles as Policy Uncertainty Weighs on Markets Despite Official Support 
Bank of Japan Likely to Delay Rate Hike Until July as Economists Eye 1% by September 
Fed Confirms Rate Meeting Schedule Despite Severe Winter Storm in Washington D.C. 
Bank of England Expected to Hold Interest Rates at 3.75% as Inflation Remains Elevated 
U.S. and El Salvador Sign Landmark Critical Minerals Agreement to Boost Investment and Trade 
Asian Currencies Trade Flat as Dollar Retreats After Fed Decision 
U.S. Prosecutors Investigate Fed Chair Jerome Powell Over Headquarters Renovation 
Bank of Korea Expected to Hold Interest Rates as Weak Won Limits Policy Easing 
ECB Signals Steady Interest Rates as Fed Risks Loom Over Outlook 
Asia Stocks Pause as Tech Earnings, Fed Signals, and Dollar Weakness Drive Markets 
Wall Street Slips as Tech Stocks Slide on AI Spending Fears and Earnings Concerns 
Canada’s Trade Deficit Jumps in November as Exports Slide and Firms Diversify Away From U.S. 
With the Israel-Iran conflict easing and oil prices dropping, investors are breathing a sigh of relief. However, a new storm is gathering at the U.S. Federal Reserve, where internal divisions are emerging over the next move on interest rates.
Macquarie analysts caution that the ceasefire is not a lasting peace. While fears of oil supply shocks have temporarily subsided, market attention has pivoted to growing discord within the Fed. A “proportional response” from Iran and a U.S.-brokered truce have helped risk sentiment, sending oil prices down and boosting the euro and yen. But as the dollar’s safe-haven appeal weakens, focus shifts to U.S. monetary policy.
Fed Governors Chris Waller and Michelle Bowman—typically known as inflation hawks—have surprised markets by signaling support for a rate cut as early as July, provided inflation remains subdued. Even Chicago Fed President Austan Goolsbee hinted at favoring cuts if tariff pressures diminish. Analysts suggest that Waller and Bowman’s dovish pivot may reflect political ambitions ahead of future leadership changes at the Fed.
Their remarks have increased speculation that the July FOMC meeting is now "in play" for a rate cut. Still, Fed Chair Jerome Powell is expected to highlight a “diversity of opinions” during his upcoming Congressional testimony, underlining the central bank’s internal divide.
Macquarie notes that without ongoing tariff uncertainty, a rate cut might have already occurred in June. For now, the likely outcome is a “dovish hold” in July, with possible dissenters and heated discussions on how tariffs are influencing inflation trends.
As geopolitical tensions cool abroad, political dynamics and policy debate within the Fed may become the new source of volatility for markets this summer.
