Trump's criticism of Powell weakens dollar, creates market uncertainty

From Yahoo Finance: 2025-06-26 00:37:00

Investor sentiment was recovering until Trump criticized Fed Chair Powell, sparking dollar selling. Trump considering Powell’s replacement as early as September could undermine Powell’s authority. Trump’s attacks on the Fed erode investor faith in central bank independence. Dollar index down 10% this year amid trade policy uncertainty.

Trump’s chaotic trade policies and criticism of Powell have investors looking to move money elsewhere, weakening the U.S. dollar. Trump’s tariffs and potential trade deals deadline add to market uncertainty. NATO leaders backing increased defence spending influences stock markets. Shell denies talks of buying BP.

In Asia trade, European stock markets may open muted. Investors watching defence stocks after NATO’s backing of increased spending. Shell denying talks of buying BP affects corporate world. Key event: Germany Gfk consumer sentiment for July. Markets remain cautious amidst geopolitical tensions and trade uncertainty.

Read more: Trump punches at Powell, dollar recoils