The dollar index extended its decline to 97 on Thursday, marking its lowest level since February 2022, as expectations grow that the Fed may cut interest rates sooner than previously anticipated. The Wall Street Journal reported that President Trump is considering announcing his pick for the next Fed Chair as early as September or October, effectively installing a "shadow" chair who could influence sentiment and potentially steer policy in a more dovish direction. Trump has repeatedly criticized Chair Powell for maintaining current rate levels and not delivering further cuts. Market pricing now reflects 62bps of easing by the end of the year, slightly up from 61bps the previous day. Meanwhile, Fed Chair Powell testified before Congress, reiterating that interest rates should remain steady for now. He warned that tariffs could pose upside risks to inflation, justifying caution, but acknowledged that without those inflationary pressures, the Fed would likely have continued easing.