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Institutional analysis: Trump's firing of Powell may lead to a 5% fall in the US dollar index.
Jin10 data July 17 news, InTouch Capital Markets market strategist Sean Callow stated that any move by the Trump administration to fire Fed Chairman Powell could severely impact the dollar. This action may lower short-term yields due to market expectations of appointing a more dovish chairman, leading to an increase in the risk and inflation premium of long-term U.S. Treasuries. There is currently no historical data available to assess the forex market's reaction, but he added that in the long run, the dollar index DXY could easily fall by more than 5%.