Thu, 26 Jun 2025

Thu, 26 Jun 2025 Pound hits near 4-year high as Trump rattles dollar

A report that the US President could name the new head of the central bank early raises concerns over its independence.

* The pound rose above $1.37, its highest level against the dollar in nearly four years
* Markets were unnerved by a report that President Trump could bring forward the naming of Jerome Powell's replacement as head of the US Federal Reserve
* Trump had considered naming Powell's replacement by September or October, which is earlier than expected
* The move has sparked concerns that Trump may install someone sympathetic to his demands and erode confidence in the Fed's independence
* This could lead to higher borrowing costs for everyone if investors demand higher interest rates for holding debt
* Traders are betting on a weaker dollar in this environment, with some speculating that Kevin Warsh or US Treasury Secretary Scott Bessent may be considered as Powell's replacement.
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