The dollar weakened on Thursday following reports that President Trump may announce a new Federal Reserve chairman sooner than anticipated.
Dollar Weaker Amid Fed Chair News
The dollar lost ground after *The Wall Street Journal* reported that Trump might consider naming a new Fed chair sooner than expected. This comes after Trump expressed dissatisfaction with current chair Jerome Powell’s handling of interest rates, stating he has been too slow to cut them.
Political Pressure on Powell
Rodrigo Catril, a strategist at National Australia Bank, mentioned that Trump’s potential early announcement could exert pressure on Powell. He suggested the possibility of a 'shadow' Fed chair emerging. Meanwhile, the White House stated that the Fed should focus on growth-oriented monetary policy.
Candidates for Fed Chair Position
Among the potential candidates for the Fed chair position are Kevin Warsh, a former Fed governor, and Kevin Hassett, director of the National Economic Council. Warsh has discussed the idea of replacing Powell and has stated his views on monetary policy. Hassett reportedly claims he is not interested in the position. Another candidate mentioned is David Malpass, who previously ran the World Bank and has supported rate cuts.
In conclusion, as uncertainty looms regarding the leadership of the Fed, the dollar may continue to face pressure. President Trump is contemplating his potential successors, which adds to the volatility in financial markets.
