San Francisco, CA – September 28, 2025 – A senior executive at PGIM Fixed Income has flagged a growing risk to the U.S. dollar, should political influence prompt the Federal Reserve to shift toward a more dovish policy stance.
According to Daleep Singh, vice chair and chief global economist at PGIM, persistent criticism by former President Donald Trump of Fed Chair Jerome Powell—alongside attempts to remove Fed Governor Lisa Cook and appoint his adviser Stephen Miran to the Fed board—raises concerns about undue interference in monetary policy.
Singh spoke at a conference in New York, warning that if the Fed becomes too dovish, the dollar could face significant downward pressure. The U.S. dollar has already slid about 9.5% year-to-date against major currencies.
While the Fed recently cut interest rates for the first time since December, Singh cautions that the environment could change drastically after Powell’s term ends in May next year.
He added that dovish monetary policy, loose fiscal measures, and inflationary pressure may combine to further weaken the greenback—especially as other major central banks follow different policy paths.
