The U.S. dollar experienced a recovery from its previous decline during Wednesday after President Donald Trump dismissed reports about his plans to dismiss Federal Reserve Chair Jerome Powell. The financial markets experienced a shock when Trump reportedly discussed Fed Chair removal with Republican lawmakers but he later stated he had no intention to fire Powell despite his criticism of Powell’s reluctance to reduce interest rates.
The removal of Powell before his 2026 term expiration would create risks for both Fed credibility and dollar investor trust according to analysts. According to Juan Perez of Monex USA the Fed’s independence faces serious damage which would weaken global trust in the U.S. currency.
The dollar index decreased by 0.27% to reach 98.31. The euro price increased 0.34% to $1.1639 while the greenback value decreased 0.52% to 148.1 yen.
