US Dollar Falls After Trump’s Fed Attacks
- NEW YORK (April 21, 2025) – The U.S.dollar experienced a sharp decline following President Donald trump's public criticism of Federal Reserve Chairman Jerome Powell, according to a report.
- Concurrently, gold prices surged by 2%, reaching a record high of $3,393 per ounce (28.34 grams).
- On April 17, President Trump voiced his dissatisfaction with the Federal Reserve's pace in lowering interest rates.He stated, "Mr.
Dollar Dips Amid Trump’s Criticism of Fed Chair Powell
Table of Contents
- Dollar Dips Amid Trump’s Criticism of Fed Chair Powell
- Dollar Dips Amid Trump’s Criticism of Fed Chair Powell: Your Questions Answered
- What Happened to the U.S. Dollar?
- How Did the Markets React?
- What Specifically Did President Trump Say About Jerome Powell?
- Was There Any Confirmation of Trump Considering Powell’s Dismissal?
- How Did the Market Respond to These Developments?
- What Were the Expert Opinions on the Situation?
- what Are the Underlying Concerns?
- What Role Did the Global Trade War Play?
- What Is the Potential Impact of Removing Jerome Powell?
- How Unusual Is This Situation?
- Summarizing Key Market Movements
NEW YORK (April 21, 2025) – The U.S.dollar experienced a sharp decline following President Donald trump’s public criticism of Federal Reserve Chairman Jerome Powell, according to a report.
Currency and Gold Markets React
The dollar fell 1.1% to its lowest level in three years. Concurrently, gold prices surged by 2%, reaching a record high of $3,393 per ounce (28.34 grams). Other currencies also saw movement, with the Swiss franc reaching a 10-year high, up 1.2%, while the euro and yen both increased by 1%.
Trump’s Displeasure with Fed Policy
On April 17, President Trump voiced his dissatisfaction with the Federal Reserve’s pace in lowering interest rates.He stated, “Mr. Powell would leave his seat if I asked him. I am not satisfied with him,and I let him know. Believe me, if I wanted him to go, it would be very quickly.”
White House Confirms Consideration of Powell’s Dismissal
Kevin Hassett, then-president of the Council of Economic Advisers, confirmed on April 18 that Trump was “continuing to study” the possibility of removing Powell from his position as head of the Federal Reserve.
market Response and expert opinions
Following Hassett’s remarks, several hedge funds reportedly sold off dollar holdings. Will Comprenolle, an expert at FHN Financial in Chicago, commented, “Threatening mr. Powell is only shaking up the confidence of international investors in American assets.”
Some analysts suggest that while the news regarding Powell influenced market sentiment, the ongoing global trade war remains a primary factor in the dollar’s depreciation.
yujiro Goto, a foreign currency strategist at Nomura Securities, noted the unusual nature of the situation: “although bond sales and currency depreciations occurring together in emerging markets are not uncommon, it is surprising to see such an event on a major reserve currency market like the United States.”
Concerns Over Fed Independence
Analysts at CICC, a Chinese investment bank, stated in an April 20 report that policy uncertainty has caused the dollar and treasury bonds to “behave like risky assets.” They added that Trump’s recent comments regarding Powell “have further increased market concerns about the independence of the Federal Reserve.”
Investors and analysts suggest that any attempt to remove Powell before his term expires in May 2026, or to exert pressure on monetary policy, could trigger market volatility.
Dollar Dips Amid Trump’s Criticism of Fed Chair Powell: Your Questions Answered
What Happened to the U.S. Dollar?
The U.S. dollar experienced a notable decline on April 21, 2025. According to a report, this drop followed President Donald Trump‘s public criticism of Federal Reserve Chairman Jerome Powell. The source indicates the dollar fell 1.1% adn reached its lowest level in three years.
How Did the Markets React?
Currency markets and gold prices reacted significantly:
Dollar: Fell 1.1%
Gold: Surged 2% to a record high of $3,393 per ounce (28.34 grams)
Swiss Franc: Rose 1.2% to a 10-year high
Euro & Yen: Both increased by 1%
What Specifically Did President Trump Say About Jerome Powell?
President Trump voiced dissatisfaction with the Federal Reserve’s pace in lowering interest rates. On April 17, he stated: “Mr. Powell would leave his seat if I asked him. I am not satisfied with him, and I let him know. Believe me, if I wanted him to go, it would be very quickly.”
Was There Any Confirmation of Trump Considering Powell’s Dismissal?
Yes. Kevin Hassett, than-president of the Council of Economic Advisers, confirmed on April 18 that Trump was “continuing to study” the possibility of removing Powell from his position.
How Did the Market Respond to These Developments?
The market showed signs of nervousness. Following Hassett’s remarks, reports indicated that several hedge funds sold off their dollar holdings.
What Were the Expert Opinions on the Situation?
Multiple experts weighed in:
Will Comprenolle (FHN Financial, Chicago): Commented that “Threatening Mr. Powell is only shaking up the confidence of international investors in American assets.”
Yujiro Goto (Nomura Securities): Noted the unusual nature of the situation, emphasizing that it is indeed surprising to see such an event in a major reserve currency market like the United States, even though bond sales and currency depreciations are not uncommon in emerging markets.
analysts at CICC (Chinese Investment Bank): Stated policy uncertainty has caused the dollar and treasury bonds to “behave like risky assets”. They added Trump’s comments increased concerns.
what Are the Underlying Concerns?
The central concerns revolve around the independence of the federal Reserve:
Policy Uncertainty: according to CICC, this uncertainty has contributed to the dollar and treasury bonds behaving like risky assets.
* Threats to Fed Independence: Any attempt to remove powell or exert pressure on monetary policy could trigger market volatility, according to various investors and analysts.
What Role Did the Global Trade War Play?
Some analysts suggest that the ongoing global trade war remains a primary factor in the dollar’s depreciation, even though the news regarding Powell influenced market sentiment.
What Is the Potential Impact of Removing Jerome Powell?
investors and analysts suggest that attempting to remove Powell before his term expires in May 2026, or exerting pressure on monetary policy, could trigger market volatility. This underscores the importance of the Fed’s independence in maintaining market stability.
How Unusual Is This Situation?
It’s considered unusual. Yujiro Goto of Nomura Securities pointed out that while bond sales and currency depreciations are common in emerging markets, seeing this in a major reserve currency market like the United States is surprising.
Summarizing Key Market Movements
| Currency/Asset | Movement |
| ——————- | —————————————– |
| U.S. Dollar | Fell 1.1% |
| Gold | rose 2% (Record High: $3,393/oz) |
| Swiss Franc | Up 1.2% (10-year high) |
| Euro | Increased 1% |
| Japanese Yen | Increased 1% |