The US currency has been under pressure from President Trump\u2019s tariff policy and his standoff with the Federal Reserve chairman<\/p>\n\n\n\n
The US dollar tumbled to a three-year low on Monday as market jitters mounted over US President Donald Trump\u2019s tariff war and his escalating disagreement with Federal Reserve Chair Jerome Powell.<\/p>\n\n\n\n
The ICE US dollar index \u2013 which tracks the greenback against a basket of major currencies \u2013 slid more than 1% to 97.923, its lowest since March 2022. The dollar also hit fresh lows against the euro, pound, yen and Swiss franc, and weakened against the ruble, slipping below 80 for the first time since June 2024.<\/p>\n\n\n\n
The currency has been under growing pressure since Trump launched what he termed \u2018Liberation Day\u2019 tariffs on April 2, targeting global trade partners. Market confidence was further rattled after Trump publicly lashed out at Powell on Thursday over interest rates.<\/p>\n\n\n\n
The president slammed the Fed chair, demanding rate cuts and warning that Powell could be removed. \u201cIf he wants him out, he\u2019ll be out of there real fast,\u201d Trump said. His comments came after Powell cautioned that the tariffs were \u201chighly likely to generate at least a temporary rise in inflation\u201d and signaled no imminent rate cuts.<\/p>\n\n\n\n
White House economic adviser Kevin Hassett later said the administration was studying whether it could legally fire Powell before his term ends.<\/p>\n\n\n\n
The clash has alarmed investors, despite Powell saying he has no plans to step down early and stressing that the Fed\u2019s independence was a \u201cmatter of law.\u201d<\/p>\n\n\n\n
Trump renewed his attacks on Monday, calling Powell \u201cMr. Too Late, a major loser\u201d in a Truth Social post and warning the economy would slow unless rates were slashed.<\/p>\n\n\n\n
US stocks took another hit, with the Dow, Nasdaq and S&P 500 all dropping more than 3%.<\/p>\n\n\n\n
Investors are dealing \u201cwith a fresh source of macro anxiety: Trump\u2019s threats to Fed independence,\u201d industry expert Adam Crisafulli of Vital Knowledge told CNBC on Monday.<\/p>\n\n\n\n
Any attempt to fire Powell would likely trigger a steep sell off in US equity markets, Evercore ISI Vice President Krishna Guha told the outlet.<\/p>\n\n\n\n
Trump appointed Powell to the Fed in 2018 and he was reappointed by former President Joe Biden in 2022. His term as chair runs through May 2026.<\/p>\n\n\n\n