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Dollar looks to Fed signals as policy outlook stays on hold

Societe Generale expects the Fed to keep the funds target range at 3.5% to 3.75% through 2027, with further moves possible later in 2026.

Reported · Written up by our desk · Central Banks

Societe Generale’s Jan Groen reviewed the July 2026 FOMC outcome, saying the Federal Reserve left the fed funds target range at 3.5% to 3.75% and maintained a cautious stance on inflation.

The note points to upcoming US data as key drivers, highlighting the importance of readings for Core PCE and CPI for the next policy decisions.

Groen also assumes the Fed will remain on hold through 2027, while flagging the possibility of hikes starting from late 2026.

In the near term, FXStreet describes the dollar as awaiting clearer policy signals, noting traders are turning cautious ahead of additional US releases that could shift expectations.

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