Trump's Actions Raise Credibility Concerns For DollarMarket Talk

The Trump administration's actions are undermining the credibility of the dollar, Ostrum Asset Management strategist Axel Botte says in a note. President Trump has previously suggested he could oust Federal Reserve Chair Jerome Powell, casting doubts over the Fed's independence, he says. While Trump has since walked back on these comments, the "damage has been done," Botte says. U.S. fiscal policy is on an unsustainable path, with twin deficits likely to reduce the dollar's value over time. Additionally, Trump's plans to build a bitcoin strategic reserve is detrimental to the dollar. "If the U.S. aims at debasing its currency, the rest of the world is unlikely to support it." The DXY dollar index rises 0.2% to 99.4080. ([email protected])