U.S. Dollar Falls to Lowest Level in Three Years Amid Escalating Tensions Between Trump and Powell

The U.S. dollar has dropped to its lowest level in three years, weighed down by rising tensions between President Donald Trump and Federal Reserve Chair Jerome Powell. The decline follows a sharp public attack from Trump, who labeled Powell a “major loser” and demanded an immediate cut in interest rates.

Trump warned of an impending economic slowdown unless interest rates are lowered without delay, claiming Powell is “too late” in taking necessary action.

This escalation in political rhetoric has rattled financial markets. The Dow Jones Industrial Average fell by more than 2.5%, while the Nasdaq Composite dropped by 2.55%, and the S&P 500 slid by 2.36%.

For his part, Austan Goolsbee, President of the Federal Reserve Bank of Chicago, warned that political interference in the central bank’s policies could exacerbate inflation and raise unemployment. He emphasized the importance of the Fed's independence in setting monetary policy.

Amid these developments, investors are closely watching the moves of both the U.S. administration and the Federal Reserve, concerned that the ongoing tensions could destabilize financial markets and increase volatility in global currency prices.