21.04.202507:47:39UTC+00Dollar Slumps as Trump Administration Ramps Up Pressure on Fed

The dollar index dropped to 98.2 on Monday, marking the lowest level since February 2022, as concerns regarding the Federal Reserve's independence have put downward pressure on the US dollar. Last Friday, Kevin Hassett, Director of the National Economic Council, indicated that President Trump is contemplating the dismissal of Federal Reserve Chair Jerome Powell. A day prior, Trump publicly criticized Powell on social media, stating that his removal "cannot come fast enough" and escalating demands for the central bank to reduce interest rates. These statements have exacerbated fears about the potential politicization of US monetary policy, which could erode the Fed's credibility and shake investor trust in the dollar. This situation arises at a particularly delicate time, as US assets, including the dollar and Treasury bonds, are already subject to pressure and being increasingly perceived as less predictable safe havens due to growing uncertainties surrounding the administration's policies. Consequently, the US dollar has depreciated by approximately 4.6% in April, experiencing the steepest drops against the euro, yen, and Swiss franc.