As such, Nomura argues that the shift in dynamics at the central bank would compound the bearish elements for the dollar. If Cook is removed from her post and Miran replaces Kugler, Trump would eventually make 5 appointments of the 7 Fed governors should Powell also leave in May next year.
The firm notes that this continued development will see markets price in a greater risk premium against the dollar, adding to the broader downtrend that is already underway for the currency.
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