USD weakens as Trump advisor Hassett signals aggressive Fed rate cut push

USD/JPY declined 0.4% to 156.80 as markets reacted to Trump advisor Kevin Hassett's dovish Fed commentary, stating the central bank is 'way behind the curve in lowering rates.' Hassett, leading Fed chair candidate at 62% on betting markets versus Kevin Warsh at 22%, highlighted Trump's trade agenda success and a $600 billion year-over-year deficit reduction. His aggressive rate-cut stance contrasts with current Fed policy, potentially pressuring the dollar across major pairs. Markets are pricing in increased probability of faster monetary easing under potential Hassett leadership, weakening USD against G10 currencies. Technical indicators show USD/JPY testing support at 156.50, with further downside possible toward 155.80 if dovish Fed expectations intensify. The dollar index (DXY) dropped 0.3% to 107.20, approaching key support at 107.00.