Deutsche Bank: If the next Fed Chair fails to effectively address inflation risks, the US Dollar may face downward pressure
BlockBeats News, December 2nd, Deutsche Bank analyst Antje Praefcke pointed out that if the next Federal Reserve chair responds to U.S. President Trump's calls for rate cuts during high inflation, the U.S. dollar may face downward pressure.
Expected nominee and current White House National Economic Council Director Hassett is seen as a loyal supporter of Trump, increasing the likelihood of a Fed rate cut, according to Praefcke. If the Fed fails to effectively contain inflation risks, it will have a negative impact on the currency.
She stated that while this situation has not yet occurred, "based solely on market expectations that the Fed may take a more dovish stance on inflation, it is enough to put pressure on the U.S. dollar." (FXStreet)
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