The dollar index steadied above 98 on Friday but remained on track to post a weekly loss of about 0.5% as expectations for Federal Reserve rate cuts grew and concerns over the economic impact of new tariffs weighed on the currency. Weekly jobless claims exceeded forecasts, adding to signs of a cooling labor market after last week’s weaker-than-expected nonfarm payrolls report. In political developments, President Donald Trump nominated Stephen Miran, chair of the Council of Economic Advisors, to replace Adriana Kugler on the Federal Reserve Board of Governors. Markets also reacted to reports that Fed Governor Christopher Waller is a leading contender to head the central bank, reinforcing expectations for a September rate cut. On the trade front, Trump’s sweeping retaliatory tariffs took effect at midnight on Thursday, introducing levies ranging from 10% to 41% and stoking concerns over their potential drag on the US economy.