This uncertainty surrounding the Fed’s independence could add volatility to U.S. dollar pairs in the coming months.
Treasury Secretary Bessent recently noted that there are 11 strong candidates for the next Federal Reserve chair, with the interview process set to begin after Labor Day.
According to the special Jackson Hole Edition of the CNBC Fed Survey, 41% of respondents believe the next Fed chair will act independently from the President, while 37% expect a more coordinated approach to interest rates with the White House. 22% were uncertain.
The Japanese yen could benefit the most from the potential U.S. chaos, as it is considered a safe-haven asset. Currently, 148.90 appears to be the key resistance, coinciding with the 200-period simple moving average. A sustained breakout here could signal a stronger bullish trend. Ideally, we’d like to see the RSI rise above the neutral 50 level to confirm this move. 145.00 represents the potential near-term support, aligning with the mid-range level and reinforced by the Ichimoku cloud.
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