The U.S. Dollar hit a three-year low due to President Trump's criticisms of the Federal Reserve

From Yahoo Finance: 2025-04-21 13:20:00

The U.S. Dollar Index hit a three-year low as President Trump’s threats to undermine the Federal Reserve’s independence rattled financial markets. Trump has criticized Fed Chair Jerome Powell, leading to a slump in stocks, the dollar, and Treasurys, eroding faith in U.S. assets.

The Dollar Index fell to 97.92, its lowest since March 2022, amid concerns over Trump’s influence on the central bank. Trump expressed frustration with Powell’s reluctance to cut interest rates, leading to speculation about Powell’s potential dismissal.

Investors sought safety in gold, driving prices up nearly 30% this year, reaching a record high over $3,440 an ounce. Long-term Treasury yields rose slightly, with the 10-year note yielding 4.39% on Monday.

Trump’s clash with Powell could impact the global economy, with UBS’s Chief Economist warning of the consequences of eroding trust in central banks. Trump continued to pressure Powell on social media to cut interest rates, as the Fed prepares for its next decision on May 7.



Read more at Yahoo Finance: Why the Dollar Hit a 3-Year Low on Monday