21.08.202501:22:06UTC+00Dollar Muted as Jackson Hole Eyed

The dollar index remained relatively stable around the 98.3 mark on Thursday, consolidating after recent advances as investors looked forward to the Federal Reserve’s annual Jackson Hole symposium for insights into potential interest rate changes. Market participants are particularly focused on Fed Chair Jerome Powell’s address, hoping for indications on whether the policymakers might counter expectations of an imminent easing of rates. Currently, futures markets suggest an 82% likelihood of a quarter-point interest rate reduction in September, a decrease from 94% the previous week. The minutes from the Fed's July meeting highlighted that officials are more concerned about inflation issues than about risks in the labor market, and discussions over tariffs continue to cause divisions within the committee. Meanwhile, in Washington, President Donald Trump has called for the resignation of Fed Governor Lisa Cook, citing allegations of mortgage fraud, and reiterated his advocacy for lower interest rates. With Powell’s tenure concluding in May, Trump is considering possible replacements while Treasury Secretary Scott Bessent has expressed support for a more substantial half-point rate cut by September.