Former Biden Economic Advisor: If Trump Pushes Fed to Turn "Dovish", the US Dollar Could Be in Jeopardy

　　On Friday Eastern Time, Daleep Singh, an executive at the fixed income department of US asset management company PGIM, stated that pressure from US President Trump could potentially push the Federal Reserve towards an overly dovish stance, which is a major concern currently facing the US dollar.

　　Daleep Singh previously served as Deputy National Security Advisor for International Economics under former President Biden and is currently Vice Chairman and Global Chief Economist of PGIM Fixed Income. The company manages nearly $900 billion in assets.

　　Trump recently attempted to remove Federal Reserve Governor Lisa Cook and appointed his economic advisor Stephen Moore to the Fed's monetary policy committee. This move has recently heightened concerns that the Fed might become excessively accommodative and allow inflation to spiral out of control.

　　"We are genuinely very concerned that the Fed might suddenly turn dovish as it enters the new year next year, changing its reaction function," Daleep Singh said at a dollar conference held by the Federal Reserve Bank of New York.

　　Singh noted that although the Fed implemented its first rate cut of the year last week and is expected to gradually lower borrowing costs in the coming months, the situation could change after Powell's term as Fed Chair ends in May next year.

　　He stated that loose monetary policy, expansionary fiscal policy, and upward pressure on inflation would all be unfavorable for the US dollar, especially considering that central banks of other major economies are at different stages of their monetary policy cycles and are unlikely to follow the Fed's dovish shift.