Dollar reacts to US strikes on Iran and dovish Fed comments, strength then retreats.

From Yahoo Finance: 2025-06-23 16:19:00

The U.S. dollar reacted to U.S. strikes on Iran and dovish comments from Federal Reserve officials, with the dollar strengthening and then giving up gains during trading on Monday. The Federal Reserve left its key interest rate unchanged, citing economic uncertainty and looming tariffs affecting consumer prices. Fed Chair Jerome Powell noted the labor market is at maximum employment and inflation is slightly above the 2% goal, potentially leading to rate cuts if economic conditions worsen. Fed Governor Michelle Bowman suggested rate cuts could happen next month pending favorable inflation and labor market data. President Trump has criticized Powell and the Fed for not cutting rates, calling for Powell’s removal, though legal barriers exist.



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