Trump's criticism of Fed Chair Powell causes dollar to hit three-year low
From Yahoo Finance: 2025-04-21 06:40:00
President Donald Trump’s criticism of Federal Reserve Chairman Jerome Powell caused the dollar to hit a three-year low. Trump has suggested removing Powell for not lowering interest rates quickly enough, prompting fears of interference with the central bank’s independence. The dollar’s decline signals market uncertainty amid ongoing trade disputes and economic policy concerns.
The dollar’s value plummeted against major currencies, with the pound and gold rising amid safe-haven asset investments. Trump’s economic adviser hinted at the president’s desire to oust Powell, raising questions about potential interference with the Fed’s autonomy. Powell’s removal could impact the perceived independence of the central bank and market stability.
Investors reacted to Trump’s threats by selling off the dollar, reversing gains made after his election. The president’s tariff policies have sparked fears of a US recession and global economic slowdown. Trump has paused some tariff increases, but tensions remain high as he pushes for renegotiation with other countries.
Amidst market ructions, the dollar’s recent decline highlights concerns over the impact of Trump’s economic policies. The president’s actions have led to increased volatility in currency markets, with uncertainty prevailing over the future of the dollar’s safe-haven status. Trump’s aggressive stance on tariffs continues to unsettle investors and world leaders alike.
Read more: Dollar slumps to three-year low as Trump attacks Fed chairman