The dollar index (DXY00) today is down by -0.38% at a 5-week low. The dollar was undercut by today’s weak Nov ADP report, which was dovish for Fed policy. The dollar recovered from its worst level today after the Nov ISM services index unexpectedly rose to a 9-month high.
President Trump said on Tuesday that he will announce his selection for the new Fed Chair in early 2026. Bloomberg reported last week that National Economic Council Director Kevin Hassett is seen as the likely choice to succeed Powell. Hassett's nomination would be bearish for the dollar as he is seen as the most dovish candidate. In addition, Fed independence would come into question, as Hassett supports President Trump's approach to cutting interest rates at the Fed.
