TechFlow, August 27 — According to Jinshi Data, Deutsche Bank analyst Antje Praefcke said that threats to the Federal Reserve's independence and worsening U.S. budget deficits are structural pressures facing the dollar. U.S. President Trump's dismissal of Fed Governor Lisa Cook has sparked renewed concerns over the Fed's independence, which she stated is "crucial for maintaining the currency's value."
Praefcke noted that central banks must make painful decisions to address economic imbalances. Additionally, the dollar is suffering from concerns over U.S. debt sustainability. Trump's tax and spending legislation could ultimately prove more costly than currently planned. While some tax benefits were intended to be temporary, past experience shows they are difficult to reverse as their expiration approaches.
