USD Bears Eye Rate Cuts as Trump Advisor Signals Policy Shift

The US Dollar faces renewed selling pressure as White House economic advisor Kevin Hassett stated there's 'plenty of room to cut rates,' signaling potential dovish shifts in monetary policy. His comments suggest the Trump administration may push for more accommodative Fed policy, though Hassett emphasized the need for consensus based on facts and data. Despite bullish projections for 2026, Hassett acknowledged recent jobs data was distorted by government shutdowns, adding uncertainty to employment figures. Markets are now pricing in higher probability of rate cuts in H1 2025, weakening the dollar against major peers. Technical indicators show the DXY (Dollar Index) testing support at 106.50, with a break below potentially accelerating USD weakness. Traders should monitor upcoming Fed communications and economic data releases for confirmation of policy direction shifts.