Dollar Slips as Trump Eyes Waller for Fed Chair, BoE Delivers Hawkish Cut

The U.S. dollar seesawed after Bloomberg reported that Federal Reserve Governor Christopher Waller is emerging as the leading candidate to replace Chair Jerome Powell when President Donald Trump fills the post next year. The prospect of a leadership change perceived as more dovish initially lifted the greenback but later fed expectations of lower U.S. interest rates. By early Friday trading in Asia the Dollar Index hovered near 98.04, putting it on course for a weekly decline of about 0.7%. Interest-rate futures signal a 93% probability of a Federal Reserve rate cut at the September meeting and at least two reductions by year-end, according to CME data cited by Reuters. Currency moves were amplified by the Bank of England’s decision to trim its benchmark rate by 25 basis points in a narrowly split 5–4 vote. Analysts described the outcome as one of the most hawkish versions of a cut, helping sterling cling to a two-week high while adding pressure on the dollar.