The biggest near-term risk for the U.S. dollar could be political pressure from President Donald Trump pushing the Federal Reserve toward an overly dovish stance, warns a senior executive at PGIM Fixed Income.
🔹 Trump has repeatedly criticized Fed Chair Jerome Powell and the Board of Governors for not cutting rates aggressively enough, fueling concerns that monetary policy may be swayed by political influence.
🔹 The dollar has already fallen ~9.5% this year against a basket of major currencies, highlighting growing investor unease.
⚡ Key Watchpoint: Any signs of Fed capitulation to political pressure could deepen dollar weakness and increase volatility across global markets.
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