Yesterday, the U.S. dollar strengthened against a number of risk assets after Treasury Secretary Scott Bessent voiced his disappointment that Federal Reserve Chair Jerome Powell did not outline a clear plan for cutting interest rates.

"Rates are too high and too restrictive, they need to be lowered," Bessent told Maria Bartiromo in an interview. "I'm a little surprised the Chair didn't make it clear that we have a target by the end of the year — at least 100–150 basis points."

This statement triggered a wave of speculation in the currency markets, as investors reassessed the outlook for U.S. monetary policy and its potential impact on the global financial landscape. The dollar's strength put significant pressure on other currencies that are traditionally more sensitive to changes in U.S. interest rates.

Speaking Tuesday at an event in Rhode Island, Powell said the central bank must take into account both labor market weakness and the risk of higher inflation when making future decisions. "Short-term risks for inflation are tilted to the upside, while risks for employment are tilted to the downside, which creates a difficult situation," Powell said. "Two-sided risks mean there is no risk-free path."

In the interview, Bessent also said he did not understand why Chair Powell had stepped back slightly on this issue. He went on to praise the new Fed governor, Stephen Miran, whose nomination by President Donald Trump was confirmed by the U.S. Senate just before last week's Fed meeting.

In his first interview, Miran made it clear that the central bank should aggressively cut interest rates, and voiced disagreement when the Fed opted for just a quarter-point cut. He said he would have preferred a half-point cut.

When asked about the search for Powell's successor, Bessent said he would interview 11 candidates and that more information would be available next week.

As for the current technical picture of EUR/USD, buyers now need to take control of the 1.1760 level. Only this will allow a move toward testing 1.1790. From there, the pair could reach 1.1852, but doing so without support from major players will be quite difficult. The most distant target is the 1.1850 high. In case the instrument declines, I expect serious buying interest only around 1.1725. If there are no major buyers there, it would be better to wait for a retest of the 1.1690 low or consider long positions from 1.1665.

As for the current technical picture of GBP/USD, buyers need to take out the nearest resistance at 1.3465. Only this will allow targeting 1.3500, above which breaking through will be quite challenging. The most distant target is the 1.3535 level. If the pair falls, the bears will attempt to gain control of 1.3435. If they succeed, a breakout of this range would deliver a serious blow to the bulls' positions and push GBP/USD toward the 1.3380 low, with the prospect of extending to 1.3340.