Post #15636

USD Shaken as Fed Independence Questioned The dollar came under pressure as safe-haven flows rotated into the Swiss franc, euro, and gold after reports that the Trump administration threatened Fed Chair Jerome Powell with a criminal indictment, raising fresh concerns around Federal Reserve independence. DXY snapped a multi-day rally as markets began pricing a higher risk premium on the U.S. currency. Currently trading in between the 50 & 200 Daily moving averages. While markets aren’t fully pricing a loss of Fed independence yet, the episode has added uncertainty at a sensitive moment, with policymakers already navigating a slowing labor market and an active rate-cut cycle. Some argue pressure on the Fed could even push officials to lean slightly more hawkish to defend institutional credibility. Looking ahead, Tuesday’s U.S. CPI is a key test for inflation expectations and the Fed’s path, while a potential Supreme Court ruling on Trump’s tariffs this week is another volatility risk. - Alan