US Dollar Weakens Sharply Amid Fears Of Federal Reserve Interference By President Trump

The US dollar experienced a notable drop on Monday as market confidence was shaken by growing fears that President Donald Trump may attempt to undermine the independence of the Federal Reserve.

According to LMSINT MEDIA, the latest dip in the dollar’s value followed comments from White House economic adviser Kevin Hassett, who revealed that the administration is still evaluating whether it can legally remove Federal Reserve Chairman Jerome Powell. This came just one day after Trump harshly criticized Powell and demanded swift interest rate cuts.

On the global currency front, the greenback plummeted to a 10-year low against the Swiss franc, slumped to a seven-month low against the yen, and slid as the euro reached a three-year high, continuing a sustained wave of investor distrust in the US economy.

“President Trump may not have direct authority to dismiss Powell, but even the perception that the Fed’s independence could be compromised is enough to rattle markets,” said Vishnu Varathan, Head of Macro Research for Asia ex-Japan at Mizuho Bank.

He added that destabilizing the Fed doesn’t require an immediate dismissal of Powell. Instead, merely suggesting such drastic shifts can erode trust in the institution’s neutrality—putting downward pressure on the dollar.

Market Reactions and Global Implications

Currency movements across global markets were impacted as well. The euro surged to $1.153275, the US dollar slumped to 0.80695 against the Swiss franc, and the yen strengthened, with the dollar sliding 1.1% to 140.63 yen. The British pound rose over 0.5% to $1.3380, while the Australian dollar hit a two-month high of $0.64015.

Trading volumes were reportedly lighter than usual due to Easter Monday holidays in markets such as Australia and Hong Kong.

Analysts have noted that these developments add to existing economic uncertainty caused by Trump’s controversial trade tariffs and international policies, which have sparked global concern.

“This is a buffet for dollar bears—from unpredictable tariff strategies to deteriorating global trust in US policymaking,” added Varathan.

External Analysis Confirms Trends

An in-depth review from Reuters confirms that escalating political pressure on the Fed is contributing to the greenback’s instability. The publication notes that investor sentiment has taken a negative turn as Washington’s economic strategies continue to raise questions.

At LMSINT MEDIA, we track market shifts and political influences on the economy closely. Explore our financial news section for in-depth reports and daily updates on currency trends, policy shifts, and global market reactions.