The hawkish expectations of the Federal Reserve drive the USD/JPY exchange rate soaring

ChainCatcher news, according to Jinshi reports, after the Federal Reserve cut interest rates, the dollar weakened across the board, and the yen rose at one point, but ultimately the USD/JPY exchange rate erased all losses and surged. The FOMC dot plot indicates that two more rate cuts are expected in 2025, while the market anticipates three. Federal Reserve Chairman Powell described the rate cut as a "risk management" action, and future data will be key. Strong data could trigger a shift in rate expectations towards a hawkish stance, supporting the dollar, while weak data may continue to exert pressure. The rise of the yen is mainly influenced by market expectations of a dovish Federal Reserve.