VP Bank's Brill: Trump's Powell Attacks Threaten Dollar

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00:00So do I do I lose sleep? Should I lose sleep over this whole Powell being fired?

00:07He might be gone anyway in nine months time.

00:09Yeah. Yeah. It's a bit strange idea. Put it neutrally.

00:13It's a bit of a trauma, I would say, isn't it?

00:16But at the same time, it's a very serious issue, isn't it?

00:19Because it's about the independence of the Fed.

00:22So let's take the market reaction as, well, no one really believes he's going to go through with it.

00:30But if he goes through with it, that might not be a good scenario, I would say.

00:35How do you think that's being expressed?

00:37Seems like the dollar continues to be sort of the victim in a lot of the headlines that we get,

00:41whether it's tariffs, whether it's about Fed independence.

00:44Yeah. The dollar is under pressure, has been for many months now.

00:48And many of the factors putting the dollar under pressure are still in place and might be even getting bigger.

00:53Foremost inflation dynamics. It's not good for the dollar. Fiscal situation is not good.

00:58And if you risk the independence of the Fed, it's also not good news for the dollar.

01:01So mid to long term, the dollar faces a lot of headwinds.

01:05But at the same time, we see right now a lot of negative sentiment on the dollar.

01:10And whenever that is the case, like a small rebound is possible for whatever reason,

01:14because sentiment is just too negative in the short term.

01:17And we advise our clients then take that opportunity, if there's a rebound,

01:20maybe then to think about getting a bit less dollar exposure in your portfolio.