Wall Street regains confidence in the dollar as the Federal Reserve under Powell activates the bulls.

As several Wall Street banks believe that the prospects for the US dollar will reverse, the dollar is expected to achieve one of its strongest monthly performances in the past year. Large banks like JPMorgan Chase, Bank of America, and Goldman Sachs are regaining confidence in the dollar, following Federal Reserve Chairman Kevin Walsh's pledge to restore price stability, stimulating bets on interest rate hikes. Meera Chandan, Co-Head of Global Foreign Exchange Strategy at JPMorgan Chase, stated in an interview that the Federal Reserve has "activated" a bullish outlook for the dollar. In recent weeks, the market narrative has shifted, reigniting speculation about the "American exceptionalism" that will support US assets. Data shows that the US economy remains resilient relative to other regions globally. Meanwhile, artificial intelligence continues to drive large-scale corporate spending and fund inflows into the stock market, with investors betting that productivity improvements will further boost the dollar. This is a U-shaped reversal compared to more than a year ago, when "hedging against the US", de-dollarization, and devaluation trades were popular themes for betting against the dollar. Since then, these themes have cooled off.