German Bank: Fed Independence Risk, Rising U.S. Debt Hinder Dollar Structure

By: theblockbeats.news|2025/08/27 20:42:19
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BlockBeats News, August 27th, German Bank analyst Antje Praefcke stated that the structural pressure factors facing the US dollar include the threat to the Federal Reserve's independence and the continuous deterioration of the US budget deficit. The dismissal of Federal Reserve Board member Lisa Cook by US President Trump has raised new concerns about the Fed's independence, she said, which is "crucial to maintaining the value of the currency." Praefcke stated that the central bank must make painful decisions to address economic imbalances. In addition, the US dollar faces a blow from concerns about the sustainability of US debt. Trump's tax and spending bill may ultimately be more expensive than currently planned. She stated that although some tax breaks should be temporary, past experience shows that it is difficult to reverse these breaks as they approach expiration. (FXStreet)

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