If Trump gets heavy with Powell, dollar won’t like it

The dollar could be negatively impacted if U.S. President Donald Trump turns up the heat on Jerome Powell through the remainder of his tenure at the Federal Reserve.

U.S. Treasury Secretary Scott Bessent told Fox Business Network on Wednesday that, while Trump wanted lower interest rates, he would not ask the Fed to cut.

A few days before last week’s Fed rate hold, Trump said “I think I know interest rates much better than they do, and I think I know it certainly much better than the one who’s primarily in charge of making that decision,” in an apparent reference to Powell – whose term as chair ends in May 2026.

In comments on his Truth Social media platform following the Fed’s hold, Trump did not directly call for rate cuts, as he said he would do.

Markets currently see an 87% chance of the Fed keeping rates unchanged again next month. (0#USDIRPR)
Source: Reuters