In unpleasant news for the nation, the U.S. dollar has plummeted to a three-year low, amid the escalating battle between President Donald Trump and Federal Reserve Chair Jerome Powell.
See the tweet below!
As global investors turn away from American assets, they’re left with the haunting question: What happens next?
President Trump’s relentless criticism of Fed Chair Powell, labeling him a “major loser,” is driving investor insecurity.
The U.S. Dollar Index has nosedived to 97.92, the lowest since March 2022, reflecting deepening concerns about the Fed’s independence.
Trump insists on immediate rate cuts to bolster the economy, escalating the tension.
The dollar’s 10% drop over three months corresponds with a surge in gold prices, hitting record levels above $3,400 per ounce.
The stock market, meanwhile, reels under pressure, with major U.S. indices facing significant declines.
Trump pushes for “preemptive cuts” to combat low inflation and falling energy costs, drawing criticism for potential Fed interference.
“Mr. Too Late, a major loser,” President Donald Trump has said regarding Powell, cited by The Globe and Mail.
The ongoing tariff wars spurred by Trump’s policies are exacerbating the dollar’s fall.
Investors, wary of a possibly politicized central bank, are pulling money out of the U.S. as Powell warns tariffs could lead to “stagflation.”
Analysts caution that removing Powell might trigger further market selloffs, undermining the Fed’s credibility in taming inflation.
Historically, the U.S. dollar has held its place as a global reserve currency, but the current scenario tells a different story.
Currencies such as the euro, yen, and Swiss franc gain strength, while the DXY index settles around 98.50.
Financial analysts signal a bearish outlook, with technical analysis pointing to oversold conditions in U.S. currency markets.
U.S. dollar falls to three-year low as Trump's Powell threats further dent investor confidence https://t.co/d5dymR8DSq
— CNBC (@CNBC) April 21, 2025
“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,” Krishna Guha, vice chairman at Evercore ISI, told CNBC.
“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.
Concern about the trajectory of economic policy and potential changes at the Federal Reserve continues to mount among investors.
The tug-of-war between the administration and the Federal Reserve is leading America into uncertain territory, where economic strength and national pride are at stake.
