Dollar Falls Amid Rising Concerns Over Federal Reserve Independence
The U.S. dollar weakened on Wednesday as investors grew increasingly concerned about the independence of the Federal Reserve, following President Donald Trump’s latest move to expand his influence over the central bank.
The pressure on the currency came after Trump announced his decision to dismiss Fed board member Lisa Cook over alleged mortgage-related violations. The development triggered legal challenges from Cook’s side, raising the prospect of a prolonged court battle that could further cloud the outlook for the central bank’s autonomy.
These political tensions undermined market confidence in the dollar, with traders viewing the move as another step toward expanding executive control over independent institutions. In currency markets, the dollar traded at 147.52 yen, while the euro stood at $1.1638 and the British pound at $1.3478.
The dollar index, which measures the greenback against a basket of major peers, edged up to 98.27 after falling 0.24% in the previous session. Elsewhere, the Australian dollar held steady at $0.6495, while the New Zealand dollar slipped slightly to $0.5856.
Despite relatively calm trading conditions in Asia, the ongoing uncertainty around the Fed’s independence continues to weigh on the dollar, with investors closely watching upcoming policy decisions for further direction.
