{"id":700703,"date":"2026-01-16T21:29:09","date_gmt":"2026-01-16T21:29:09","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/700703\/"},"modified":"2026-01-16T21:29:09","modified_gmt":"2026-01-16T21:29:09","slug":"us-dollar-gains-as-odds-drop-on-hassett-being-made-fed-chair","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/700703\/","title":{"rendered":"US dollar gains as odds drop on Hassett being made Fed chair"},"content":{"rendered":"<ul data-testid=\"Summary\" class=\"summary-module__summary__QjADA\">\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">Polymarket betting site favors Warsh for Fed Chair role<\/li>\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">Japan considers intervention to counter yen weakness<\/li>\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">Takaichi plans snap election to gain support for fiscal policies<\/li>\n<\/ul>\n<p>NEW YORK, Jan 16 (Reuters) &#8211; The dollar gained on Friday after U.S. President Donald Trump praised economic adviser Kevin Hassett at \u200ba White House event and said he may want to <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/business\/trump-tells-hassett-he-may-want-keep-him-white-house-2026-01-16\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" target=\"_blank\" rel=\"noopener\">keep him in his current role<\/a>, prompting speculation he is less likely \u200cto be named as chair of the Federal Reserve.<\/p>\n<p>&#8220;I see Kevin&#8217;s in the audience, and I just want to thank you. You were fantastic on television today. I actually want to keep you where you are, if you want to know the truth,&#8221; Trump said.<\/p>\n<p data-testid=\"promo-box\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf article-body-module__promo-box__hVl8h\"> Sign up  <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/world\/asia-pacific\/dollar-poised-third-weekly-gain-buoyant-data-seen-keeping-fed-cuts-bay-2026-01-16\/undefined?location=article-paragraph&amp;redirectUrl=%2Fworld%2Fasia-pacific%2Fdollar-poised-third-weekly-gain-buoyant-data-seen-keeping-fed-cuts-bay-2026-01-16%2F\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" target=\"_blank\" rel=\"noopener\">here.<\/a><\/p>\n<p>&#8220;We have seen some US dollar buying on this headline, as it underscores that the Fed decision is mostly about political credibility,&#8221; Adam Button, chief currency analyst at investingLive, said in a note.<\/p>\n<p>&#8220;Of the candidates, Hassett is \u200cseen as the least independent, which in turn is the most-dovish due to Trump&#8217;s longstanding desire to cut rates,&#8221; \u200bButton said.<\/p>\n<p>Trump is expected to name his candidate to succeed Jerome Powell in the coming weeks, with Powell&#8217;s term due to end in May. The <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/business\/us-treasurys-bessent-says-rieder-not-yet-interviewed-top-fed-job-decision-likely-2026-01-08\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" target=\"_blank\" rel=\"noopener\">leading four candidates<\/a> for the role are Hassett, Fed Governor Christopher Waller, former Fed Governor Kevin Warsh and BlackRock&#8217;s chief bond investment manager Rick Rieder.<\/p>\n<p>Betting site Polymarket \u200dshows that Warsh is now a favorite to get the role.<\/p>\n<p>The dollar index , which measures the greenback against a basket of currencies including the yen and the euro,<br \/>\nrose 0.06% to 99.41, with the euro down 0.1% at $1.1594. The index reached a six-week high of 99.49 on Thursday.<\/p>\n<p>The U.S. currency has been boosted this week by data showing an \u2060improving U.S. labor market, which has pushed back expectations of further Federal Reserve rate cuts until June.<\/p>\n<p>Fed Vice Chair for Supervision Michelle Bowman said on \u200dFriday a fragile job market that <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/business\/bowman-says-fed-should-be-ready-cut-rates-again-amid-job-market-risks-2026-01-16\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" target=\"_blank\" rel=\"noopener\">could weaken quickly<\/a> means the U.S. central bank should stand ready to cut interest rates again if needed.Data on Friday showed that U.S. \u200cfactory production <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/business\/autos-transportation\/us-manufacturing-output-unexpectedly-increases-december-2026-01-16\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" target=\"_blank\" rel=\"noopener\">unexpectedly \u200cincreased<\/a> in December amid a surge in primary metals output that offset a decline at motor vehicle assembly plants, but activity contracted in the fourth quarter against the backdrop of challenges from import tariffs.JAPAN WARNS ON YEN INTERVENTION<\/p>\n<p>The yen was also stronger on Friday after Japan&#8217;s Finance Minister Satsuki Katayama said Tokyo would not rule out any options to counter weakness in the currency, including coordinated intervention with the U.S.<\/p>\n<p>The Japanese currency weakened to an 18-month low against \u2060the dollar on Wednesday on concerns that \u2060Japanese Prime Minister Sanae Takaichi \u200bwill have more leeway to introduce fiscally expansionist policies.<\/p>\n<p>Takaichi plans to <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/world\/asia-pacific\/japan-pm-takaichi-mulls-feb-8-snap-election-yomiuri-reports-2026-01-13\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" target=\"_blank\" rel=\"noopener\">dissolve parliament<\/a> next week and call a snap parliamentary election, the secretary general of her party said on Wednesday, as she seeks <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/world\/china\/why-japans-takaichi-is-gambling-an-early-election-2026-01-14\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" target=\"_blank\" rel=\"noopener\">public backing<\/a> for her spending plans.<\/p>\n<p>\u201cThat&#8217;s probably the key factor orchestrating the extension of the Takaichi trade and the new dollar\/yen highs,\u201d said Vassili Serebriakov, an \u200dFX and macro strategist at UBS. But \u201cwe have to weigh the upside in dollar\/yen against risks of FX intervention.\u201d<\/p>\n<p>The Japanese yen strengthened 0.3% against the greenback to 158.16 per dollar.<\/p>\n<p>Serebriakov sees an intervention as more likely in the 160-162 area.<\/p>\n<p>Noah Buffam, director in FICC strategy at CIBC Capital Markets, also sees potential for the yen to continue to weaken, \u200bnoting that Japanese officials are not yet showing full urgency in their warnings.<\/p>\n<p>Some Bank of Japan \u200dpolicymakers also see scope to raise interest rates <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/world\/asia-pacific\/some-boj-see-scope-raise-rates-sooner-than-markets-expect-sources-say-2026-01-16\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" target=\"_blank\" rel=\"noopener\">sooner than markets expect<\/a> with April a distinct possibility, as a sliding yen risks adding to already broadening inflationary pressure, four sources familiar with \u200bits thinking said.<\/p>\n<p>In cryptocurrencies, bitcoin fell 0.77% to $94,812.<\/p>\n<p data-testid=\"SignOff\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__extra_small__8Buss body-module__full_width__kCIGb body-module__extra_small_body__Bfz20 sign-off-module__text__LQAMP\">Reporitng by Karen Brettell; 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