Dollar drops due to Fed easing expectations and Trump's criticism of Powell

From Yahoo Finance: 2025-06-26 06:52:00

The U.S. dollar is facing its worst first half since 1973, dropping on Thursday due to Fed easing expectations and Trump’s comments on the next Fed chair. European NATO members pledge to double military spending to please Trump. Asian stocks fluctuate as concerns about the Fed’s independence rise. Asia’s crude oil imports surged in June, despite a slow start to the year.

The dollar’s index has plummeted over 10% in 2025, its worst performance in three years. Europe’s economic outlook has improved, while the U.S. faces uncertainty over Fed policy. Trump’s criticism of Powell has triggered speculation on rate cuts. Fed futures now predict a 137 basis point rate cut to 3% by early 2027.

Global markets are up, with MSCI’s all-country index and Nasdaq 100 at record highs. S&P 500 nears all-time high ahead of second-quarter earnings season. Economic updates on trade, jobs, and consumer confidence show weakness. Trump’s fiscal bill and debt ceiling raise in Congress are key, along with the tariff pause expiration.

Fed futures see a 137 basis point rate cut by early 2027, with a one-in-four chance of a cut in July. Economic updates show notable weakness. Trump’s fiscal bill and debt ceiling raise in Congress are crucial. Oil giant Shell denies BP bid rumors. Fed futures predict a 137 basis point rate cut by early 2027, with a one-in-four chance of a cut in July. Key economic updates are expected today.



Read more at Yahoo Finance: Dollar plunges as Trump pummels Powell