Economists: There is uncertainty about the future direction of US monetary policy.

On September 27, Jin10 reported that Dilip Singh, Vice President and Chief Global Economist of PGIM's Fixed Income Division, stated that the main short-term risk to the dollar comes from President Trump’s ongoing pressure on the Fed. He pointed out that the market is concerned that the Fed may adopt an overly dovish stance under political pressure, thus loosening monetary policy. Singh noted that although the Fed recently cut interest rates slightly, there is uncertainty about the future direction of monetary policy against the backdrop of Fed Chair Powell's term ending in May next year. He warned that if loose policies are combined with fiscal expansion, it could drive up inflation and further weaken the dollar amid global monetary policy divergence.