Dollar Under Pressure, Trump Ready to Announce Powell's Replacement Sooner
The US dollar exchange rate weakened against all major currencies on Thursday morning in Asian trading, after a surprising report from the Wall Street Journal said that Donald Trump might announce a new Federal Reserve (The Fed) chairman candidate earlier than expected.
According to the report, Trump is considering revealing the name of Jerome Powell's replacement in September or October, long before Powell's term ends in May 2026. Two names mentioned on the list are Kevin Warsh, a former Fed governor, and Kevin Hassett, a former White House economic adviser.
This move is considered a form of increasing political pressure on the Fed to immediately cut interest rates. "We could have a 'shadow' Fed chairman before Powell actually steps down," said Rodrigo Catril, a strategist at National Australia Bank.
Trump previously expressed his dissatisfaction with Powell, who he considered too slow in lowering interest rates. He emphasized that high interest rates only burden the government budget and slow economic growth.
With Trump saying he was considering three or four names to replace Powell, markets reacted quickly—pressuring the dollar and raising speculation that the direction of U.S. monetary policy could change drastically if Fed leadership changes early.
Source: Newsmaker
