On August 26, 2025, the U.S. dollar experienced a notable decline after President Donald Trump announced an attempt to dismiss Federal Reserve Governor Lisa Cook over alleged mortgage fraud. Cook immediately contested the dismissal, asserting that the President lacks the legal authority to remove her from her position. This rare political confrontation has raised significant concerns about the independence of the Federal Reserve, triggering market speculation about potential monetary policy shifts. The U.S. dollar weakened against major currencies including the Japanese yen, British pound, and euro, reflecting investor caution amid political uncertainty. Meanwhile, the yield on two-year U.S. Treasury notes…
