Analysis: If Hassett or Malpass Succeeds as Fed Governor, the Dollar Will Decline

According to ChainCatcher, citing analysis from foreign media via Jintou, if U.S. President Trump selects either Kevin Hassett or David Malpass to succeed Kugler as a Federal Reserve governor, the U.S. dollar may weaken.

This is because Hassett and Malpass are considered more dovish than another leading candidate for the position, Kevin Warsh. Trump is expected to announce his pick to replace Kugler by the end of this week, and the appointee could also become a potential successor to Powell as Fed Chair. Trump has reportedly narrowed the shortlist to four candidates: Hassett, Malpass, Warsh, and current Fed Governor Waller. Regardless of whom Trump ultimately chooses to replace Kugler, the nominee is likely to advocate for a Fed rate cut of more than 25 basis points in September.