US Dollar attempts modest recovery amid Fed independence concerns, growth downgrades
The US Dollar Index (DXY) struggled to extend its bounce on Tuesday, hovering near the 98.50 zone after recovering slightly from the three-year trough of 98.01.
The rebound came as markets reopened from the Easter Monday holiday and reassessed the broader macro landscape. However, upside attempts were capped by renewed fears over the Federal Reserve’s (Fed) autonomy following US President Donald Trump’s sustained attacks on Fed Chair Jerome Powell.
Trump’s criticism, calling Powell “a major loser” and threatening to remove him for not cutting rates, has alarmed investors and dragged on the Greenback’s long-term credibility. These concerns were amplified by White House Economic Adviser Kevin Hassett’s admission that the administration is actively exploring legal avenues to oust Powell. Such developments have shaken the safe-haven status of the USD and added to volatility in US assets.
Source: Fxstreet