from ZeroHedge:
What was a miserable shortened week for the USD has gone from bad to worse in early Asia trading, when the Dollar index suddenly collapsed to a fresh 3 year low
While there is no specific catalyst for the suddenly collapse in the illiquid early Asian session, which sees many countries on extended Easter holiday, Bloomberg quotes traders that hedge funds are selling the dollar against virtually any currencies after National Economic Council Director Kevin Hassett said Friday that President Donald Trump is still exploring ways to remove Federal Reserve Chairman Jerome Powell, according to traders.
TRUTH LIVES on at https://sgtreport.tv/
“The president and his team will continue to study that,” National Economic Council Director Kevin Hassett said Friday when asked by a reporter if removing Powell was an option.
Hassett then suggested, accurately, that the Fed under Powell, who was appointed by Trump during his first term, had acted politically to benefit Democrats.
“The policy of this Federal Reserve was to raise rates the minute President Trump was elected last time, to say that the supply-side tax cuts that were going to be inflationary,” Hassett said, adding that Fed officials opted not to go “on TV and at IMF meetings and warn about the terrible inflation from the obvious runaway spending from Joe Biden, and the obvious runaway spending from Joe Biden was textbook inflationary,” Hassett continued. “And then they cut rates right ahead of the election.”
Hassett, is of course, correct, as we first pointed out two weeks ago…
Fed reaction function pic.twitter.com/80AzJlZo3h
— zerohedge (@zerohedge) April 9, 2025
.. as Bank of America’s Michael Hartnett pointed out on Friday…
Fed cut 50bps in Sept when stock market at record high, Atlanta Fed was forecasting +3% US GDP growth; Fed now determined not to cut rates after 20% market plunge, Atlanta Fed forecasting -3% GDP growth
… and as former NY Fed president Bill Dudley made crystal clear all the way back in 2019.
