Deutsche Bank analyst Antje Praefcke warns that potential Federal Reserve rate cuts could weaken the US dollar if the next chairman responds to President Trump’s calls for interest rate reductions amidst persistent inflation. Kevin Hassett, a likely nominee and current White House National Economic Council Director known for his staunch support of Trump, is expected to advocate for such a move. Praefcke notes that this influence increases the likelihood of Fed rate cuts. If these rate cuts fail to effectively control inflation, it could negatively impact the dollar’s strength. While this hasn’t happened yet, market expectations of a more lenient approach from the Federal Reserve towards inflation are already putting pressure on the currency.