Deutsche Bank Warns Dollar May Face Pressure If Fed Chair Yields on Inflation Under Trump

Deutsche Bank analyst Antje Praefcke said on Dec. 2 that the U.S. dollar could face downward pressure if the next Federal Reserve chair cuts rates in response to President Trump's calls amid elevated inflation, Jin10 reports. Praefcke noted that Kevin Hassett, expected to be nominated as Director of the White House National Economic Council and viewed as a close Trump ally, increases the likelihood of Fed rate cuts. She stated that while this scenario has not materialized, "market expectations alone that the Fed might adopt a more dovish stance on inflation are sufficient to pressure the dollar."