Dollar Slumps as Trump Administration Ramps Up Pressure on Fed
The dollar index fell to 98.2 on Monday, the lowest since February 2022, as concerns over the Federal Reserve's independence weighed on the greenback.
On Friday, National Economic Council Director Kevin Hassett revealed that President Trump is exploring the possibility of firing Fed Chair Jerome Powell. A day earlier, Trump posted on social media that Powell’s removal “cannot come fast enough,” while intensifying pressure on the central bank to cut interest rates. Such remarks have fueled worries about the politicization of US monetary policy, potentially undermining the Fed’s credibility and shaking investor confidence in the dollar.
The timing is particularly sensitive, as US assets, including the dollar and Treasury bonds, are already under pressure and increasingly seen as less reliable safe havens due to mounting uncertainty over the administration’s policies. So far in April, the greenback has lost roughly 4.6%, with its steepest declines against the euro, yen, and Swiss franc.
Source : Trading Economics
