The US dollar index, which measures the greenback against a basket of six major currencies, is down 0.19% to 95.55.
Atlanta Fed President Raphael Bostic said on Monday he was maintaining his expectation for one more interest rate hike this year, as trade tensions and worldwide events add some downside risk to an otherwise strong U.S. outlook.
The reason why the Dollars is falling this week is the President Donald Trump's aggressive rhetoric towards the US Federal Reserve.
But Kohn said it does put more pressure on Powell and other Fed officials to explain their actions and their perspectives.
But with Turkish markets closed for a religious holiday and anticipated talks between the United States and China seen lowering the temperature of the dispute, Trump's central bank comments were the main catalyst.
The president nominated Powell a year ago to replace former Fed Chair Janet Yellen. "The other countries are accommodated", Trump said. Next time he mutters veiled threats against the Fed, some real turbulence could ensue.More news: Bolton meets Netanyahu in Jerusalem to discuss Iran
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Almost eight in 10 economists believe the Fed's interest rate policies are "about right", according to a survey released Monday by the National Association for Business Economics. I doubt these comments move the needle for Powell and his colleagues, but it certainly sends a strong signal to those candidates interested in vying for one of the Fed Board's many open seats: "favor easy money policy or find another job".
"It certainly breaks a few norms for a sitting President to not only comment publicly on past Fed action, but also on potential future action as well".
The Fed has been gradually raising interest rates since the end of 2015, with five hikes coming under Trump. The Fed is expected to hike rates again in September and December, moving the federal funds rate to a relatively low 2.25 to 2.5 percent target range.
"I think China's manipulating their currency, absolutely".
Trump selected Powell for the job previous year from a short list of several prominent central bankers, praising Powell for his "wisdom" and "leadership" skills when he nominated him formally in November. "You know, a lot of people beat up on the Fed. They are not new or surprised because Trump has said he's a "low-rate" guy". Moreover, it isn't the first time Donald Trump criticized the Federal Reserve in such an aggressive manner of his, and that also makes investors nervous.