Dutch International: Concerns over the Federal Reserve's independence may trigger a "sell America" trade

According to Jinshi News, Francesco Pesole, a foreign exchange strategist at ING, stated in a report that the dollar faces a significant risk of decline after Federal Reserve Chairman Jerome Powell mentioned that the Federal Reserve received a subpoena from the U.S. Department of Justice due to cost overruns on headquarters renovations.

He pointed out that this move has reignited concerns about the independence of the Federal Reserve and may trigger the "sell-America" trade once again. Pesole noted that any further attempts to intervene in the independence of the Federal Reserve would pose considerable downside risks to the dollar.