Bank of America: Fed’s Independence in Question, Pressuring the Dollar as Markets Worry Over Dovish Tilt

According to a report by Jinse Finance, Bank of America strategist Alex Cohen stated that uncertainty surrounding the future of the Federal Reserve’s leadership is undermining the performance of the US dollar. These concerns are “clearly affecting the dollar earlier than other assets” and may be the main reason why the dollar has yet to rebound. “Even if future leadership changes occur in a relatively conventional manner, the market is already beginning to anticipate a more accommodative Fed environment,” Cohen noted. Trump continues to pressure Fed Chair Jerome Powell to cut interest rates and is scheduled to visit the Fed headquarters today, further highlighting signs of political interference.