Bloomberg Daybreak: Asia Edition Dollar Drops, Gold Rises as Trump Ousts Fed's Cook
11 snips
Aug 26, 2025 
Peter McGuire, a currency trader and CEO of Trading.com Australia, and Mary Ann Bartels, Chief Investment Strategist at Sanctuary Wealth, dive into the fallout from Trump's dismissal of Federal Reserve Governor Lisa Cook. They discuss how this impacts the U.S. dollar, driving it down while gold values rise. Market sentiments shift as doubts about interest rate cuts surface, amid concerns over export curbs on chip technology. The duo analyzes shifting economic dynamics and monetary policy’s influence on global markets, providing insight into the ever-evolving financial landscape.
AI Snips
Chapters
Transcript
Episode notes
Fed Dismissal Sparks Market Shock
- The immediate removal of Fed Governor Lisa Cook shocked markets and raised questions about central bank independence.
- That shock can change expectations for monetary policy and market volatility in Asia and globally.
Independence Is Market Bedrock
- Central-bank independence matters deeply for markets and is a long-standing principle taught in business schools.
- Undermining that independence could materially alter rate expectations and market functioning.
Dismissal Could Lower Rates, Weaken Dollar
- Removing a Fed governor can increase the chance of larger or earlier rate cuts if the presidency appoints dovish replacements.
- That prospect tends to weaken the dollar and raise FX volatility.