Federal Reserve Chairman Jerome Powell - Photo: REUTERS
According to the Financial Times , on April 21, the value of the USD fell sharply after President Donald Trump's attacks on Federal Reserve Chairman Jerome Hayden Jay Powell.
The US dollar fell 1.1 % to a three-year low. Meanwhile, gold rose 2 % to a new record of $3,393 an ounce. The Swiss franc rose 1.2% to a 10-year high, while the euro rose 1.1% and the yen rose 1%.
On April 17, President Trump expressed his dissatisfaction with the Fed's slowness in lowering interest rates: "Mr. Powell would leave his seat if I asked him to. I'm not happy with him and I've let him know. Believe me, if I wanted him to go, it would happen very quickly."
On April 18, Chairman of the White House Council of Economic Advisers Kevin Hassett confirmed that Mr. Trump is still "continuing to study" the issue of firing Federal Reserve Chairman Jay Powell.
After Mr. Hassett’s speech, many hedge funds quickly sold off the USD. “Threatening Mr. Powell only further shakes international investors’ confidence in US assets,” Mr. Will Compernolle, an expert at FHN Financial Company (Chicago), analyzed.
However, some experts commented that "although information related to Mr. Powell affected market sentiment, the main cause was still negative developments in the global trade war".
"While bond sell-offs and currency depreciations occurring simultaneously in emerging markets are not uncommon, it is surprising to see such an event in a major reserve currency market like the US," said Yujiro Goto, foreign exchange strategist at Nomura Securities.
Analysts at CICC, a Chinese investment bank, said in a report on April 20 that US policy uncertainty is causing the dollar and Treasury bonds to “behave like risk assets.” At the same time, Mr. Trump’s recent comments about Chairman Powell “further fueled market concerns about the independence of the Federal Reserve.”
The Financial Times quoted investors and analysts as saying that any attempt to oust Mr. Powell before his term (expected to end in May 2026), or to put pressure on monetary policy, could create market volatility in the US.
Source: https://tuoitre.vn/dong-usd-lao-doc-sau-khi-ong-trump-tan-cong-chu-tich-fed-20250421155106646.htm
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