Dollar Bears Return as Markets Bet on September Rate Cut and Fed’s Independence Faces Pressure

According to ChainCatcher, citing Jinshi News, Helen Given, Head of Trading at Monex USA, stated that US dollar bears have made a strong comeback today, mainly influenced by Powell’s speech at Jackson Hole and Trump’s threat to fire Federal Reserve Governor Cook. Powell noted that downside risks in the labor market are gaining more weight in the Fed’s decision-making, which has significantly increased the market’s expectation of a 25-basis-point rate cut in September. Traders also believe there is a considerable chance of another rate cut within the year, and for the first time, the overnight swap market is betting on significant easing in the first half of 2026. Trump’s remarks have raised concerns about the independence of the Federal Reserve.