Dollar Decline: Trump’s Fed Shake-Up Rattles Global Markets

The dollar and U.S. Treasuries experienced a downturn in Asian markets following President Donald Trump's decision to remove Federal Reserve governor Lisa Cook. The move has shaken investor confidence, leading to declines in various global indexes. Uncertainty about the Federal Reserve's future course adds to the economic unrest.

In his announcement on social media, Trump cited sufficient cause for Cook's removal, contributing to concerns over the central bank's independence. This has prompted major brokerages to reassess expectations for a September Federal interest rate cut, a pivotal decision for global financial markets.

Market reactions included a drop in the dollar against key currencies, while the yield on 10-year Treasury notes rose. U.S. stock futures and crude oil prices also saw declines, reflecting the broader economic implications of the political maneuvering within the U.S. financial governance system.

(With inputs from agencies.)