President Donald Trump’s defense of American economic interests has sparked a confrontation with Federal Reserve Chair Jerome Powell, who continues to resist necessary interest rate cuts.
The showdown between the two men has prompted the U.S. dollar to plummet to a three-year low.
Specifically, President Trump labeled Powell “Mr. Too Late, a major loser” for failing to stimulate economic growth when America needs it most.
The ICE U.S. Dollar Index, which measures the dollar against major currencies, has fallen to 97.92, its lowest level since March 2022.
This 10% decline over the past three months has accelerated since President Trump’s inauguration.
It also comes after the April 2 implementation of reciprocal tariffs aimed at protecting American workers and businesses from unfair foreign competition.
While financial experts worry about the Federal Reserve’s independence, President Trump has focused on getting immediate rate cuts to boost the economy and the stock market.
The president has demanded Powell cut rates “NOW,” pointing to low inflation and declining energy costs as clear signals that America’s economy needs this stimulus.
Traditional safe-haven assets are reflecting market concerns, with gold prices surging to record highs above $3,400 per ounce, up nearly 30% this year, as investors seek protection from the Fed’s failing monetary policies.
Major U.S. stock indices have experienced significant declines because the Federal Reserve has failed to respond to economic realities.
The Dow Jones has dropped as Powell resists President Trump’s call for preemptive rate cuts that would help American workers and businesses maintain their competitive edge against foreign markets that manipulate their currencies.
Trump supporters argue that the president’s America First economic policy cannot reach its full potential with a Federal Reserve chair who refuses to acknowledge economic realities.
Powell has asserted that President Trump’s tariffs could lead to “stagflation,” which is described as a combination of stagnant economic growth and high inflation.
While the dollar’s decline has some worried, many argue that it may actually benefit American manufacturers by making exports more competitive.
This aligns with President Trump’s goal of bringing manufacturing jobs back to the United States and reducing the trade deficit with countries that have been taking advantage of it for decades.
Other currencies, such as the euro, Japanese yen, and Swiss franc, have gained against the dollar during this period.
The tension between President Trump and Powell casts a shadow over the U.S. economy, as unchecked political interference in the Federal Reserve risks its inflation-fighting credibility.
Left unaddressed, this conflict could further pressure the dollar and escalate inflation expectations, tightening the economic stranglehold on American households.
