The U.S. dollar hunkered near the lowest since February 2022 against major peers on Wednesday, as traders considered dovish hints from Federal Reserve Chair Jerome Powell, along with the potential impact of President Donald Trump's spending bill.

Federal Reserve Chief Jerome Powell said it is premature to lower interest rates, citing the potential impact of tariffs.

Federal Reserve Chair Jerome Powell said Tuesday that the central bank would likely have already cut interest rates this year if not for the economic shock generated by President Trump’s tariffs. When asked Tuesday if Trump’s tariffs held up the Fed’s plan to cut interest rates,