(14 January 2026 – United States) The US Dollar (USD) fell sharply after US Federal Reserve Chair Jerome Powell was served with a grand jury subpoena from the Justice Department.
Central banks globally including the Bank of England and Reserve Bank of Australia have voiced their concern over political interference in monetary policy, throwing their support behind the embattled Chair facing a criminal indictment stemming from his June testimony on renovations to the Fed Reserve headquarters.
The greenback’s position as the world’s reserve currency depends on institutional trust, Nigel Green, CEO of deVere Group wrote in a note. “History teaches that countries that allow political leaders to dominate central banks pay a heavy economic price”
“Trump seems adamant to exert control over the Federal Reserve, potentially undermining the Fed’s monetary policy independence. Trump’s impatience and resolve to get borrowing costs lower suggests that his pick for the next chair could be a dove and a loyalist and that could be a risk to the greenback” commented Malayan Banking Bhd Senior FX Strategist, Fiona Lim.