The dollar hit a fresh three-and-a-half-year low against the euro on Friday as traders bet that the Federal Reserve will cut rates more times and possibly sooner than previously expected as some U.S.

Markets see rising odds of Federal Reserve easing as Donald Trump may replace Jerome Powell with a dovish pick.

Trump is reportedly weighing a slate of candidates to take over Jerome Powell's job and could announce a replacement long before Powell's term is over.

The gulf between where the Federal Reserve projects interest rates will be by the end of 2026 and the more aggressive cutting financial markets expect by then is partly due to the expectation that U.S.