Trump vs. Powell: Dollar Stability at Stake

U.S. President Donald Trump denied plans to fire Federal Reserve Chair Jerome Powell, despite reports suggesting he's considering it. Such a move could destabilize faith in the U.S. dollar and financial system. Market responses vary, with the euro gaining ground amid speculation and ongoing economic pressures.

President Donald Trump refuted claims that he intends to oust Federal Reserve Chair Jerome Powell, countering reports from Bloomberg and Reuters that suggested otherwise. Trump's stance was clarified in light of financial system stability concerns if Powell were to be removed from his position prematurely.

Market analysts warn that firing Powell could erode trust in the U.S. dollar's steadfastness. Juan Perez of Monex USA emphasized that any threat to the Federal Reserve's independence might critically undermine the dollar's value.

The currency markets reacted to the ongoing speculation, showing fluctuations as investor sentiment varied. The euro strengthened against the dollar, while analysts projected potentially larger rate cuts by the Fed as market uncertainty prevails.

(With inputs from agencies.)