The US dollar may face high volatility in 2026, and the Federal Reserve is under pressure.

Jane Foley of Rabobank said in a report that due to increasing political pressure on the Federal Reserve, the volatility of the US dollar is expected to intensify this year. The market is concerned that the Fed may lose its independence due to government demands to lower interest rates and pressure on current chairman Jerome Powell. However, Foley stated that some believe that members of the Federal Open Market Committee can act as a check on a Fed chairman advocating for rate cuts in a high inflation environment. Foley said that future uncertainties surrounding the Fed's credibility could bring downward pressure on the dollar, "but not send it into free fall." The DXY index fell 0.4% to 98.717.