US Dollar Seen at Risk From Trump’s Moves to Pick Policymakers

The dollar and other US assets are vulnerable to further selloffs on threats to the credibility of the country’s institutions, strategists and economists said.

US President Donald Trump now has a chance to choose a replacement for Federal Reserve Governor Adriana Kugler following her resignation Friday, creating a dynamic that could undermine Chair Jerome Powell’s influence.

Combined with Trump’s firing of the head of the Bureau of Labor Statistics Erika McEntarfer last week, the risk is investors mark down US assets due to threats to the independence of economic data and monetary policy. Such concerns have already hurt the ...