U.S. Dollar Under Pressure as Trump-Backed Fed Rate-Cut Bets Grow, Deutsche Bank Analyst Says

COINOTAG News — Deutsche Bank strategist Antje Praefcke argues that a dovish tilt from the forthcoming Federal Reserve chair in response to President Trump’s calls for rate cuts amid elevated inflation could put downward pressure on the U.S. dollar. Markets will assess how such policy signals interact with inflation risks and currency dynamics.

Praefcke notes Hassett is the expected chair nominee and seen as a loyal Trump confidant, which could lift odds of easing and a Fed rate cut if inflation risks remain contained. FXStreet cited the view as a signal that policy expectations may reprice rather than abruptly shift.

Yet, failure to rein in inflation would complicate the outlook and could reinforce USD strength, while credible easing might support risk assets, including cryptocurrencies. Traders should monitor inflation data and Fed policy communications, as currency trajectories frequently influence crypto market dynamics.