Trump reportedly considering early successor for Fed chair Powell

Donald Trump is reportedly weighing an early announcement for the successor to Federal Reserve Chair Jerome Powell, whose term is set to expire in 11 months, according to sources cited by The Wall Street Journal.

While legally Trump cannot dismiss Powell without "cause"—meaning demonstrable misconduct—the leak appears aimed at exerting moral suasion and undermining Powell’s authority, fueling investor uncertainty.

The market reacted swiftly. U.S. 2-year Treasury yields—sensitive to interest rate expectations—fell by 2 basis points to 3.76%. Meanwhile, the U.S. dollar dropped to a three-year low, with the euro climbing as high as $1.17 during early Asian trading before settling around $1.1680, up 0.2% on the day.

Since the beginning of the year, the dollar has lost over 10% against a basket of currencies amid mounting concerns over the health of the U.S. economy.