Dollar Falls on Trump Fed Nomination, Rate Cut Expectations

The U.S. dollar has weakened this week amid growing expectations of Federal Reserve rate cuts and concerns about the Fed's independence following President Donald Trump's nomination of Stephen Miran to the Fed's Board of Governors. Miran's appointment has fueled speculation of a more dovish Fed stance, increasing market bets on rate cuts with a high probability for September and potentially multiple cuts by year-end. Despite some fears that the Fed could become more politicized under Trump's influence, many analysts maintain that the central bank's independence is likely to remain intact. Weak U.S. economic data, including disappointing jobs reports and elevated jobless claims, have reinforced expectations for easing monetary policy. Meanwhile, ongoing trade policy developments and tariff announcements by the Trump administration continue to weigh on the dollar, with investors closely watching upcoming inflation and labor market data for further guidance on the Fed's policy direction.