Commerzbank: If Hassett, a leading candidate for Fed Chair, leads irrational rate cuts, the dollar may come under pressure.

In a report, Volkmar Baur of Commerzbank stated that if Hassett (a leading candidate for the next Federal Reserve Chair) insists on pushing for interest rate cuts regardless of whether economic fundamentals support it, the dollar could come under pressure. In an interview shortly before the Fed's latest rate cut, Hassett stated that the Fed was "significantly lagging" in its rate-cutting efforts. Data shows that the labor market is only cooling slowly, which does not support Hassett's claim. Baur believes that Hassett is unlikely to abandon his rate-cutting plan based on facts, "and the dollar may pay the price." (Jinshi)