Dollar Falls to Three-Year Low Amid Trump’s Criticism of Fed Chair Powell

Report By Safarti Tarjuman Business Desk

The US dollar has dropped to its lowest point in three years, following renewed criticism of Federal Reserve Chairman Jerome Powell by former President Donald Trump. The decline reflects heightened market concerns over political interference in monetary policy.

In a series of statements over the weekend, Trump called Powell “Mr. Too Late” and “a major loser,” blaming him for slow responses to economic challenges. These comments added pressure on the Fed to lower interest rates ahead of the next Federal Open Market Committee (FOMC) meeting.

As a result, the dollar index—which tracks the greenback against a basket of major global currencies—fell sharply, reaching levels last seen in early 2022. Currency traders reacted quickly, shifting investments to more stable assets such as gold and government bonds.

“Investor confidence in the central bank’s independence is being tested,” said Marcus Hill, senior currency analyst at FX Watch. “This type of political rhetoric can lead to market volatility and long-term uncertainty.”

The Federal Reserve has yet to issue a response, but experts suggest that the institution may be under increasing pressure as calls for interest rate cuts grow louder in the lead-up to the US presidential election.

Meanwhile, global markets are closely monitoring the situation. Analysts warn that further political interference in central banking decisions could lead to increased risk aversion among foreign investors.