The economic outlook has just become more uncertain. Economists at Wells Fargo expect the US Dollar to stay strong in the short term. Nevertheless, the greenback is set to weaken later this year.
Fed to cut rates in late 2023
“Given resilient growth and further monetary tightening in early 2023, we see a brief period of USD strength for now.”
“However, our longer-term outlook remains for gradual US Dollar depreciation later this year, as the US falls into recession and the Fed cuts rates in late 2023.”
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