Jane Foley: The Federal Reserve faces political pressure, and the US dollar may experience high volatility in 2026

ChainCatcher news, according to Jinse Finance, Jane Foley, Head of FX Strategy at Rabobank, stated in a report that as political pressure on the Federal Reserve increases, the US dollar is expected to face greater volatility this year. The market is concerned that the Federal Reserve may lose its independence due to government demands for rate cuts and pressure on current Chairman Powell. Foley pointed out that with inflation still relatively high, other members of the FOMC may be able to counterbalance a dovish Federal Reserve Chairman. Uncertainty surrounding the Fed's future credibility may put downward pressure on the dollar, but it is unlikely to trigger an uncontrolled decline.