FX.co ★ Dollar Steadies as Traders Weigh Fed Outlook

The dollar maintained a level above 99 on Thursday, following significant fluctuations earlier in the week. This comes as investors continue to assess Federal Reserve policy prospects in light of new economic data and ongoing concerns about Fed independence. Data released on Wednesday indicated a slight acceleration in U.S. producer inflation for November, after prior reports suggested modest consumer price growth. Additionally, retail sales in November exceeded expectations. In the political arena, President Donald Trump announced he has no intentions of dismissing Federal Reserve Chair Jerome Powell, despite the looming threat of an indictment from the Department of Justice. The central bank is broadly predicted to maintain current interest rates later this month, with market projections indicating two rate cuts beginning in June. In other developments, President Trump hinted at delaying actions concerning Iran while endorsing trade measures related to critical minerals and artificial intelligence chips.