The British news agency Reuters reports that Trump intensified his social media attacks on central bank chairman Jerome Powell on Monday, labeling him a “big loser” and pressing for a quick interest rate cut.
As a result, the dollar dropped to 97.923 against many other currencies on Monday, the lowest since March 2022. The euro climbed above $1.15, while the currency dropped to a 10-year low against the Swiss franc.
Kevin Hassett, the White House’s economic advisor, stated Friday that the president and his team are debating whether to dismiss Powell. With most markets in Europe closed for Easter and most worldwide closed on Friday for a holiday, trading was modest. All three main indexes fell more than 2%, and the Magnificent Seven group of mega-cap growth firms saw significant losses following Trump’s social media statement criticizing Powell on Monday.
ALSO READ: Germany introduces digital platform for online visa application
According to him, Paul does not answer directly to Trump; thus, he cannot be fired. He could only be removed from office under certain processes, which one would believe would be more difficult, according to Vishnu Varthan, head of macro research in Asia X Japan at Mizuho. However, could the president do anything to damage the Fed’s purported independence? Certainly, he could.
The euro reached $1.1535, its highest level since November 2021, while the dollar dropped more than 1.5% versus the Swiss franc to a 10-year low of 0.8063. According to CFTC statistics, net long bets on the Japanese yen touched a record high in the week ending April 15, and the dollar likewise fell to its lowest level in seven months versus the yen, last seen at 140.66.
In a research note, Carl Shimota, chief market strategist at the Toronto-based corporation, warned that policymakers might not be able to significantly tighten policy in the face of a sharp increase in prices if the White House’s new goals undermine the central bank’s dual mandate of promoting full employment and maintaining price stability.
The Australian dollar reached a 4-month high of $0.6430, while sterling reached its highest level since September at $1.34.
It had been almost five months since the New Zealand currency hit the $0.6000 mark.
Global markets have been shaken by Trump’s high tariffs and the ambiguity surrounding his trade policy, which has bleakened the outlook for the largest economy in the world and caused the currency to weaken as investors withdraw their funds from the US.
Follow: Pakistan Science Mission
