The dollar dropped sharply after reports that Trump may fire Fed Chair Powell. The dollar fell 0.7% against major currencies, triggering market reactions like lower banking shares and higher gold prices. Long-term Treasuries also sold off, with the 30-year bond yield rising to 5.06%. Investors had feared Powell’s removal, as Trump criticized him for not cutting rates. Experts warn of a potential dollar sell-off and market volatility if Powell is fired, raising concerns about U.S. economic stability and investor confidence. Legal challenges may arise if Trump attempts to remove Powell, leading to prolonged uncertainty and a bearish dollar outlook.

Read more at Yahoo Finance: Dollar, Treasury prices tumble after report Trump to fire Fed’s Powell