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Dollar Decline Amidst Political Turbulence
2025-04-21 12:29:09
Economy
Politics
Asia

Dollar Decline Amidst Political Turbulence

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The U.S. dollar has fallen to a three-year low, influenced by President Trump's vocal criticism of Federal Reserve Chairman Jerome Powell. Trump's remarks have sparked concerns regarding the central bank's independence, unsettling investors.

This decline has strengthened other currencies like the euro and the pound while pushing gold prices higher. The dollar's drop is also linked to ongoing trade tensions with China, further complicating the economic landscape.

Investors are bracing for potential interest rate cuts, reflecting uncertainty in both trade and monetary policy. Although Trump has suggested he might remove Powell, such a move seems legally improbable.

As the situation evolves, the interplay between Trump's economic policies and the Federal Reserve's strategies remains a focal point for market participants, highlighting the delicate balance of power and the implications for the U.S. economy.

Related news on that topic:

Trump's Tensions with Federal Reserve Intensify

Former President Donald Trump has escalated his criticism of Federal Reserve Chair Jerome Powell, urging for immediate interest rate cuts and calling for Powell’s dismissal. Trump's rhetoric reflects growing frustration with the Fed's policies, which he believes hinder economic growth. However, financial experts warn that firing Powell could establish a troubling precedent, further politicizing the Federal Reserve. Anthony Pompliano and Senator Elizabeth Warren have voiced concerns that such actions could erode investor confidence and destabilize the financial markets. As discussions around stablecoins and the Fed's role in the economy continue, the implications of Trump’s statements highlight ongoing tensions between political leadership and economic governance.

Trump's Tariffs and Fed's Challenges

President Donald Trump's aggressive tariff policies have sparked economic debates, with Federal Reserve Chairman Jerome Powell at the center. Trump has consistently criticized Powell for not lowering interest rates, arguing that such cuts are necessary amid international trade tensions. Powell, however, warns that the tariffs contribute to rising inflation and could slow economic growth, complicating the Fed's mandate of stable prices and maximum employment. The ongoing tension raises questions about the independence of the Federal Reserve, as Trump has considered dismissing Powell before his term ends, a move that could undermine the central bank’s credibility. As the Fed navigates these challenges, Powell maintains that any adjustments to interest rates will be carefully considered, balancing the risks of inflation against economic growth. Investors are closely watching the situation, as the tariffs have already impacted major indices like the S&P 500 and Nasdaq. Business leaders and economists express concerns over potential long-term economic damage, urging a more cautious approach to trade policies. The evolving situation underscores a crucial economic period, with significant implications for both domestic and global markets.

Read 34 more recent news on this topic

The press radar on this topic:

Yahoo Finance
21. April 2025 um 10:40

Dollar slumps to three-year low as Trump attacks Fed chairman

The U.S. dollar has slumped to a three-year low against a basket of major currencies, driven by President Trump's attacks on Federal Reserve Chairman Jerome Powell. Trump has repeatedly criticized Powell and suggested he should be removed, raising concerns over the independence of the central bank. The dollar's decline has led to gains in other currencies, including the pound and the euro, as well as a surge in gold prices. Investors are concerned about the impact of Trump's economic policies..
Kinh doanh - VnExpress
21. April 2025 um 10:00

USD mất giá vì ông Trump đe dọa tính độc lập của Fed

The US dollar has declined significantly against major currencies due to investor concerns over President Trump's repeated criticism of the Federal Reserve chairman. This has raised fears about the central bank's independence. The dollar index, which measures the strength of the US dollar against a basket of major currencies, has dropped to a 3-year low. The weakening of the dollar is also attributed to ongoing trade tensions between the US and China, which have fueled concerns about the health..
Yahoo Finance
21. April 2025 um 09:55

US stock futures drop as Trump takes aim at Powell

U.S. stock futures fell as President Trump continued his attacks on Federal Reserve Chair Jerome Powell, raising concerns about the central bank's independence and the path of monetary policy. The uncertainty over trade and monetary policies has hit stocks hard this year, with the S&P 500 down more than 10% year-to-date. Investors are pricing in nearly a full percentage point of rate cuts from the Fed this year, despite expectations of no change at the next meeting. The continued trade tensions..
VnExpress English
21. April 2025 um 04:09

Dollar slips against dong

The US dollar declined against major currencies, including the Vietnamese dong and Swiss franc, due to investor concerns over President Trump's plans to intervene in the Federal Reserve. The dollar fell 0.19% against the dong and reached a decade-low against the Swiss franc. Globally, the dollar also dropped to a three-year low of 98.267 against a basket of currencies.
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