Trump's Fed Interference Sparks Currency Market Anxiety
The U.S. dollar remained stable as investors worried about potential political influence over the Federal Reserve following President Trump's criticisms. Trump's attacks, particularly on Fed Governor Lisa Cook, have raised concerns about central bank independence, potentially affecting rate outlooks and currency stability before Chair Jerome Powell's remarks.
Investors faced uncertainty on Thursday as the U.S. dollar remained stable amidst concerns over the Federal Reserve's independence. President Donald Trump's latest criticisms of the central bank appeared to trigger apprehension, especially after he called for Fed Governor Lisa Cook's resignation based on mortgage allegations.
Despite Trump considering the removal of Cook, investor reactions were muted. Experts like TD Securities' Prashant Newnaha suggested the controversy held minimal immediate effect on monetary policy, though concerns about regulatory functions and oversight were noted.
Currency market reactions were subdued; the dollar index showed a slight rise this week. Meanwhile, anticipation grows over Federal Reserve Chair Jerome Powell's upcoming speech, which may address market expectations regarding rate cuts, especially in light of a weak July jobs report.
(With inputs from agencies.)
ALSO READ
PTI's Protest Movement Intensifies: Nationwide Rallies on Independence Day
Jammu Tightens Security Measures Ahead of Independence Day
Security Slip at Red Fort: Cartridges Found Amid Independence Day Prep
Haryana's Bold Move: Empowering Women for Economic Independence
Punjab Police Intensifies Statewide Security Ops Ahead of Independence Day
Google News