BBH: Fed rate cut expected to be less than anticipated, will support the US dollar

Brown Brothers Harriman & Co. (BBH) stated that the market's reaction to the recent soft US data was excessive, and the Federal Reserve may not be as aggressive in easing monetary policy as other central banks, thereby supporting the US dollar. Senior market strategist Elias Haddad wrote that overall, economic growth remains above trend levels, indicating that the market has once again priced in aggressive easing excessively. It is expected that this week's US economic data will prompt traders to reassess their bets on the Fed's easing policy. "This week's data should show that, contrary to market expectations of aggressive easing by the Fed, the US economy is relatively healthy," he added. "If there is a repricing and when the repricing occurs, the dollar is expected to further rebound." (Bloomberg)