Turbulent Markets: Trump's Fed Chair Plans Shake Confidence
Global markets show instability as President Trump's potential early replacement of Fed Chair Jerome Powell raises concerns over the central bank's independence. The dollar weakens, and uncertainty looms over U.S. trade policies. Analysts fear such moves could affect monetary policy and investor confidence.

Asian markets fluctuated on Thursday, burdened by the potential early appointment of a new Federal Reserve Chair by President Donald Trump, raising concerns about the U.S. central bank's independence. The U.S. dollar weakened further following reports that Trump may announce Jerome Powell's successor as early as this fall.
This move is perceived by some as an attempt to indirectly influence monetary policy before Powell's term ends in 2026. While a ceasefire between Israel and Iran eased oil trade tensions, traders remain anxious about Trump's looming tariff deadlines on trading partners and his known criticism of Powell.
The dollar index fell to its lowest level since March 2022, as investors, wary of Trump's trade policies, sought alternatives. Powell cautioned that tariffs could temporarily raise prices, impacting inflation. As global financial markets remain unstable, the potential impact of a more dovish Fed chair is closely monitored.
(With inputs from agencies.)
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