Dollar will suffer if Fed's independence blunted
April 26 (Reuters) -King Dollar may reign no more if Donald Trump decides to throw a spanner into the U.S. monetary policy machine in the event that he beats Joe Biden in November's presidential election.
A Wall Street Journal article headlined 'Trump allies draw up plans to blunt Fed's independence' has shone a light on potential post-election risks to the status quo about how U.S. interest rates are set.
If Fed monetary policy is even partly politicized under Trump, it could cast doubt on the ability of the Fed to keep inflation under control, to the detriment of the dollar.
In February, Trump said he would not reappoint Jerome Powell as Fed chair. Powell's term is due to end in 2026.
Trump currently holds a slight edge over Biden in U.S. swing-state election polls.
The USD index scaled a five-and-a-half month peak of 106.51 last week.
Related Column/Comment: nL5N3FY5YG nL2N3GL0N7
For more click on FXBUZ
(Robert Howard is a Reuters market analyst. The views expressed are his own)
</body></html>Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
