The U.S. dollar plummeted to a three-year low after President Donald Trump demanded immediate interest rate cuts from “loser” Fed Chair Jerome Powell.
The president’s battle with the Federal Reserve intensifies as the greenback’s value collapses.
The feud has prompted investors to flee U.S. assets and seek refuge in gold, which has soared to record highs.
The ICE U.S. Dollar Index, which measures the dollar against a basket of foreign currencies, fell as low as 97.92—its lowest level since March 2022.
This dramatic 10% decline over the past three months comes as President Trump escalates his criticism of Powell.
The president has called the Fed chair “Mr. Too Late, a major loser” while demanding immediate rate cuts to stimulate economic growth.
Additionally, President Trump’s pressure on the Fed has triggered alarm bells across financial markets.
The president has openly explored options to remove Powell from his position, prompting critics to raise questions about the central bank’s independence.
The dollar’s weakness comes amid President Trump’s bold America First economic agenda, including reciprocal tariffs rolled out on April 2.
While intended to protect American jobs and industries, these policies have faced resistance from establishment financial figures.
Powell has suggested that tariffs could lead to “stagflation,” a challenging economic scenario marked by high inflation and low growth.
Evercore ISI vice chairman Krishna Guha declared:
“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.”
Despite these concerns from Wall Street elites, President Trump maintains that immediate action is required to boost American competitiveness.
The president has publicly criticized Powell for being too slow to cut interest rates, emphasizing that rate reductions are needed “NOW.”
President Trump has also pointed to low inflation and declining energy costs as evidence that the Fed can safely cut rates without risking economic stability.
As the dollar weakens, traditional safe havens are surging. Gold has increased nearly 30% this year, reaching never-before-seen heights as investors seek protection from market volatility.
Meanwhile, major U.S. stock indices have experienced significant declines. The Dow Jones futures dropped over 350 points during yesterday’s trading session.
Technical analysts note the dollar’s bearish outlook, with the Relative Strength Index now in oversold territory.
This technical weakness comes as foreign currencies like the euro, Japanese yen, and Swiss franc gain ground against the declining dollar.
