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Potential Impact of Hassett's Rate Cut on the Dollar
AI Summary
According to Odaily, Commerzbank's Volkmar Baur stated in a report that if Hassett, a leading candidate for the next Federal Reserve Chair, insists on pushing for interest rate cuts without economic fundamentals supporting such a move, the dollar could face pressure. Hassett recently commented that the Federal Reserve is 'severely lagging' in terms of rate cuts. However, data indicates that the labor market is only cooling slowly, contradicting Hassett's assertion. Baur believes that Hassett is unlikely to abandon his push for rate cuts based on facts, which could potentially impact the dollar.
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📉 Potential Impact of Hassett's Rate Cut Stance on the Dollar
Source: Odaily (Binance Square Post) Analyst: Volkmar Baur, Commerzbank
Commerzbank analyst Volkmar Baur has warned that the US Dollar (USD) could face downward pressure if Kevin Hassett, a leading candidate for the next Federal Reserve Chair, pushes for interest rate cuts without sufficient supporting economic fundamentals.
Hassett's View: Hassett recently stated that the Federal Reserve is "severely lagging" in terms of rate cuts, signaling a more dovish and aggressive easing stance than the current Fed.
Economic Contradiction: Baur notes that current data shows the US labor market is only cooling slowly, which contradicts Hassett's argument for immediate and aggressive rate cuts.
Analyst's Conclusion: Baur believes Hassett is unlikely to be swayed by the data and will likely continue to push for the rate cuts favored by President Trump. This potential lack of data-driven policy could increase market uncertainty regarding the Fed's independence and ultimately weigh on the dollar.
