As President Donald Trump battles uncooperative Federal Reserve Chair Jerome Powell when the nation needs his support the most, the value of the dollar has hit rock bottom.
After declining 10% in just three months, the U.S. dollar has now reached its lowest point since 2022.
In response to concerns regarding the American currency, gold prices have soared to record heights as investors seek safety.
President Trump’s demand for immediate interest rate cuts highlights growing tension between the White House and a Federal Reserve that seems determined to undermine America’s economic recovery.
The U.S. Dollar Index (DXY) dropped to 97.92, marking a three-year low amid escalating friction between President Trump and Powell.
This significant decline comes as the president has publicly criticized the Fed chair for not acting swiftly to lower interest rates despite favorable economic conditions.
President Trump did not mince words in his assessment of Powell’s performance, referring to him as “Mr. Too Late, a major loser” on his social media platform.
The president has demanded the Fed cut interest rates “NOW,” citing low inflation and declining energy costs as justification for immediate monetary policy action.
While establishment figures voice concerns about Fed independence, many Americans appreciate the president’s straightforward approach to economic management.
President Trump’s call for preemptive rate cuts reflects his current focus on strengthening the economy.
As the dollar weakens, gold has emerged as a safe haven, with prices surging to an all-time high above $3,400 per ounce.
This 30% increase in gold value this year confirms that precious metals provide essential protection against economic uncertainty and government mismanagement.
Evercore ISI vice chairman Krishna Guha stated, “We’re seeing a clear signal from the market that it doesn’t like even the idea that the president might try to remove the Fed chair. There has been some loss of confidence in U.S. economic policy making in recent weeks.”
“We’ve seen that in this very odd combination of upward pressure at times on longer-term bond yields combined with a weaker dollar. That suggests global investors pulling capital out of the U.S,” he added.
The market reaction stems from Powell’s resistance to President Trump’s America First economic policies.
The Fed chair has previously suggested that tariffs—a key component of the president’s strategy to level the playing field with unfair trade partners—could lead to “stagflation.”
Major stock indices have taken a hit amid this financial uncertainty, with the Dow Jones Industrial Average experiencing significant declines.
Meanwhile, alternative assets like Bitcoin have seen notable gains as Americans seek refuge from the instability of the dollar.
Technical analysis shows a bearish outlook for the dollar, with key resistance levels that suggest further decline is possible without decisive action.
The relative strength index remains in oversold territory, indicating market sentiment has turned sharply against the U.S. currency.
