Uncertainty over the future of Federal Reserve leadership is putting pressure on the U.S. dollar, according to a note from Bank of America.
The bank says concerns around the Fed’s direction have “arguably impacted the USD more than other assets so far,” preventing the currency from sustaining a rally. With speculation mounting over whether Chair Jerome Powell will remain in his role under a second Trump administration, investors are beginning to price in the possibility of a less restrictive Fed.
- “Even if a more conventional leadership transition occurs, the market is starting to contemplate a world with a less restrictive Fed,” BofA analysts wrote.
Adding to the pressure, President Trump has publicly urged Powell to cut interest rates and even toured Fed headquarters.
This article was written by Eamonn Sheridan at investinglive.com.
