27.08.202501:36:07UTC+00Dollar Struggles Amid Worries Over Fed Independence

The dollar index remained steady around 98.3 on Wednesday, following a decline in the previous session. This shift was primarily due to renewed concerns regarding the Federal Reserve’s independence and growing doubts over the U.S. dollar's standing as the world’s leading currency. Recently, President Donald Trump announced his intention to dismiss Fed Governor Lisa Cook amid allegations of mortgage fraud. However, Cook's legal representative has indicated she plans to challenge this decision in court. Analysts have cautioned that if Cook is removed, it could increase the chances of earlier interest rate reductions, potentially enhancing Trump's influence over the Federal Reserve. Currently, the market is factoring in an 87% likelihood of a 25 basis point rate cut by the Fed in September. As investors look ahead, attention is focused on Friday's upcoming release of the PCE price index, a key inflation metric for the Fed, which will offer further insights into future monetary policy actions.