The dollar is recovering, but trust in the Fed is at risk
💥 After the crash on August 1 amid dismissals and resignations in economic authorities, the dollar began to regain its position — the market is almost certain of a rate cut by the Fed in September.
📉 Political interference (Trump removes the head of the BLS and gains the opportunity to promote 'his own' in the Fed Board) triggered a sharp sell-off of the dollar and an increase in expectations for monetary stimulus.
📈 Already on August 4, the dollar is bouncing back: DXY +0.2%, government bond yields are falling — markets are betting on soft policy rather than a tough fight against inflation.
⚠️ But analysts warn: if the Fed loses its independence, this will lead to a collapse of trust, a decrease in demand for government bonds, and possibly the launch of the printing press.
🟠 For the crypto market, this is a clear signal: more political chaos = more liquidity. Such phases are fuel for the growth of digital assets.
