Trump's Bold Move: The Ripple Effect on Global Markets

The U.S. dollar fell in early Asian trading after President Trump removed Federal Reserve Governor Lisa Cook for alleged mortgage fraud. This move raises concerns about Fed independence and predicted rate cuts. Global currencies and bonds showed varied responses to this market development.

In a surprising move that has sent ripples through financial markets, President Donald Trump has removed Federal Reserve Governor Lisa Cook from her position, citing alleged mortgage fraud.

The U.S. dollar, initially gaining strength, retreated by 0.3% following Trump's announcement, creating a new wave of uncertainty in global markets. Analysts speculate the move may lead to earlier rate cuts.

This development raises concerns about the Federal Reserve's independence amidst growing institutional risks, and comes in the wake of Trump's ongoing battle with the Fed for lower interest rates.

(With inputs from agencies.)