Trump’s Early Fed Chair Pick Talk Rattles Dollar Markets

Asian traders reacted swiftly as the US dollar slumped against major currencies following reports that former President Donald TRUMP may announce a Federal Reserve chair replacement as early as September. Current Chair Jerome Powell's term runs through May 2026, but Trump has publicly criticized his interest rate decisions, claiming they've stifled economic growth.

Potential candidates include former Fed governor Kevin Warsh and National Economic Council director Kevin Hassett, both with established ties to Trump's circle. The mere suggestion of an early replacement has already injected volatility into currency markets, with strategists warning of prolonged dollar weakness if political pressure intensifies.

Rodrigo Catril of National Australia Bank noted the unprecedented scenario could create a 'shadow Fed chair' situation, where market participants begin pricing in policy changes well before any official transition. The dollar's slide reflects growing uncertainty about central bank independence during the election cycle.