Institution: The Federal Reserve still has room to cut interest rates in the second half of the year, and the recent rebound of the US dollar may be short-lived.

Odaily Planet Daily reports that Lee Hardman from Mitsubishi UFJ Bank pointed out in a report that the recent rebound of the US dollar may be short-lived, as the US-Iran conflict is expected to last only a few weeks rather than months. He stated, “If this forecast is correct, the US dollar is likely to peak in the short term and reverse starting from the second quarter.” Hardman believes that due to US energy independence and the declining expectation of further Fed rate cuts, the conflict has driven up oil prices and boosted the dollar. However, he noted that as long as energy prices fall back, the Federal Reserve still has room to cut rates in the second half of 2026. Additionally, US policy uncertainty may remain elevated. (Jin10)