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The US dollar plunges, hitting its lowest value in three years

Politiko 2025-04-22 15:14:11

The US dollar plunges, hitting its lowest value in three years

The value of the US dollar has fallen to its lowest level in more than three years, following Trump's recent open clash with the head of the US Federal Reserve, Jerome Powell.

The US dollar index, which measures its strength against a basket of major world currencies, was recorded at 98.4 in the late hours of Tuesday morning, marking the biggest drop since March 2022.

Under normal circumstances, the US dollar is seen as a safe haven during economic and political turmoil. But this time, investors have shown uncertainty due to the potential impact that trade tariffs and rising public debt could have on the US economy.

Tensions have risen sharply after President Donald Trump sharply attacked Federal Reserve Governor Jerome Powell for his refusal to cut interest rates. In a statement on social media, Trump called Powell a "failure" and accused him of failing to respond to the country's economic challenges.

Trump demanded that the Fed take a preemptive interest rate cut, warning of a possible economic slowdown if Powell does not act immediately.

"There could be a slowdown in the economy if he doesn't lower interest rates now," the president wrote.

These statements have sparked uncertainty in financial markets, with an immediate effect on US stocks and the value of the dollar. Investors worry that clashes between the White House and the Federal Reserve could lead to reckless decisions or direct political intervention in monetary policy.

The conflicts between Trump and Powell are not unprecedented. Since the beginning of his term, the president has repeatedly expressed dissatisfaction with the Fed's stance, and has previously been reported to have considered removing Powell from office, a controversial step from both a legal and political perspective.

Meanwhile, Powell has repeatedly warned that trade tariffs imposed by the Trump administration could lead to price increases and an economic slowdown, further increasing tensions with the White House.

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