Trump considers candidates to replace Powell, and the dollar index falls to around 97.50.

Gate News bot reports that according to FXStreet, the US Dollar Index (DXY) is an index that measures the value of the dollar against a basket of six major world currencies. On Thursday, it fell to around 97.60 in early European trading, marking a new three-and-a-half-year low. Concerns about the independence and credibility of The Federal Reserve (FED) have put pressure on the dollar.

According to the Wall Street Journal (WSJ), U.S. President Donald Trump is considering selecting and announcing a successor to Federal Reserve Chairman Jerome Powell before September or October. Sources indicate that Trump may consider former Federal Reserve Governor Kevin Warsh, National Economic Council Director Kevin Hassett, and Treasury Secretary Scott Pruitt.

Kieran Williams, the Head of Asian Forex at InTouch Capital Markets, stated: “This move will raise questions about the potential weakening of the Federal Reserve’s independence and may undermine its credibility.”

He added: “If that’s the case, it may realign interest rate expectations and trigger a reassessment of dollar positions.”

TRUMP17.89%
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