Jun 27, 2025
Last week’s TFTD “Trump twists, Powell sticks”, we noted that “even in the contest between Fed Chair and POTUS, the issue is not certain,” and that “it’s not much fun being a lame duck”. It seems that financial journalists have finally caught up with the story, attributing the recent dollar weakness to Trump’s threat to turn Powell into a lame duck. Consider us skeptical. Dec SOFR contracts have perked up by about 30bps from recent lows, but does that really explain the most recent bout of dollar weakness? The last time DXY traded down here (97.325) was Feb 25th 2022.