The dollar faces a significant risk of depreciation amid renewed concerns involving the Federal Reserve. According to ChainCatcher, ING's currency strategist Francesco Pesole pointed out in a report that the U.S. dollar could experience a sharp decline after the U.S. Department of Justice sent a subpoena to the Fed related to possible irregularities in the costs of its headquarters renovation.
Pesole stated that the incident has reignited market fears about the central bank's independence, creating room for a potential return of the narrative of "selling American assets." For him, any additional sign of political interference in the Federal Reserve's independence represents an important risk factor for the dollar's performance.