[Regnum] The dollar has fallen sharply due to doubts about the independence of the Federal Reserve System (FRS) after reports of a possible change in its leadership by US President Donald Trump. This was reported on June 26 by Reuters.
Earlier it became known that the American leader could replace the current head of the Federal Reserve System, Jerome Powell, by the fall with someone who would agree to lower rates.
"From a market perspective, of course, not only does this undermine the Fed's credibility and independence, it also poses a risk to the US rate outlook," Nick Rees, head of macro research at Monex Europe, told the publication.
Kieran Williams, head of Asian FX at InTouch Capital Markets, said markets would likely take a dim view of any premature move to appoint a successor to Powell, especially if it appeared politically motivated.
On April 17, Trump said Jerome Powell should leave his post as soon as possible. He responded by assuring that he would not leave. The American leader called the Fed chief "Mr. Too Late" and "a big loser." Trump called on Powell to cut interest rates immediately.
On April 22, amid statements from the head of the White House to the head of the regulator, the dollar index DXY, which reflects the value of the American currency in relation to six major US trading partners, reached its minimum value since March 2022 - 97.92 points.
The currency basket includes the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc. The index is calculated by the Intercontinental Exchange (ICE).
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