The dollar index (DXY00) today is down by -0.18%. The dollar is weaker amid expectations that the Fed will cut the federal funds target range by -25 bp at the conclusion of today's FOMC meeting. The dollar extended its losses today after the US Q3 employment cost index rose less than expected, a dovish factor for Fed policy.
The dollar has recently been undercut by concerns that President Trump intends to appoint a dovish Fed Chair, which would be bearish for the dollar. Mr. Trump said last 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 the most likely choice as the next Fed Chair, seen by markets as the most dovish candidate.
