USD weakens as Trump expands Fed Chair search beyond Powell

The US dollar index declined 0.22% as reports emerged that President Trump's team is broadening their search for potential Federal Reserve Chair candidates beyond current Chair Jerome Powell. According to the Wall Street Journal, new contenders have been added to the list, including former St. Louis Fed officials, signaling potential shifts in monetary policy leadership. This development has introduced uncertainty about future Fed policy direction, weighing on dollar sentiment. Market participants are closely monitoring these developments as changes in Fed leadership could significantly impact interest rate trajectories and monetary policy stance. The expanded search suggests Trump may be seeking a more accommodative approach to monetary policy, which could pressure the dollar further. Technical indicators show the dollar index testing key support levels, with traders positioning for potential policy shifts ahead.