Quick overview

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The US Dollar Index (DXY), which compares the greenback’s strength against six major currencies, held steady after dropping more than 0.5 percent on Monday.

 

Market prudence increased, as concerns about the Federal Reserve’s (Fed) independence and the uncertainty surrounding upcoming tariffs grew. US Commerce Secretary Howard Lutnick told reporters, “That’s a hard deadline so that the new tariff rates will come in on August 1.”.

Nations will begin to pay the tariffs, but nothing will stop them from communicating with us after that date. US Treasury Secretary Scott Bessent stated that the Fed’s “mandate creep” into non-policy areas constitutes a threat to its independence on monetary policy. Bessent called for a thorough examination of those operations by the central bank.

Treasury Secretary Bessent demanded that the Federal Reserve be reevaluated as an organization. Speculation about a potential dismissal has increased in response to President Trump’s renewed criticism of Chair Powell for not lowering interest rates.

US President Donald Trump is expected to fire Fed Chairman Jerome Powell shortly, according to a White House official. In a Truth Social post on Sunday, Trump refuted it, describing it as “typically untruthful.”

Republican Congresswoman Anna Paulina Luna has formally accused Fed Chair Powell of perjury in connection with conversations regarding the Federal Reserve’s long-planned renovations to its Washington headquarters.