Trump latest: Gold price hits new high after dollar plunges following president’s attacks on Fed chair Powell – UK Times

Donald Trump’s repeated criticisms of Federal Reserve chair Jerome Powell have driven a flight from U.S. assets and undermined the dollar, while the threat of tariffs continues to be a drag on markets around the world.

“The ‘sell America’ trade was in full flight,” Tapas Strickland, head of market economics at NAB, told Reuters.

“Whether or not President Trump is legally able and willing to move against the Fed, the jousting underscores the loss of U.S. exceptionalism and the very real policy risk for investors.”

Analysts at JPMorgan also noted the average trade deal took an average 18 months to negotiate and 45 months to implement, as the White House continues negotiating with trade partners around the world while higher tariffs remain on hold.

“We reiterate our view that if current policies do not change, then the probability of a U.S. recession in 2025 is 90 percent,” they said in a note.

The U.S dollar hit a low not seen in three years as the president again lashed the central bank chair.

The ICE U.S. Dollar Index, which measures the dollar against multiple other foreign currencies, fell to 97.92 by market close on Monday, its lowest level since March 2022, according to FactSet.

Global markets also responded to Trump’s latest tirade against the Federal Reserve, with the Dow Jones Industrial Average slumping by 1,221 points lower (3.1 percent). The S&P 500 dropped 3.3 percent, and the Nasdaq Composite lost 3.6 percent.

The president has again attacked Federal Reserve chair Jerome Powell, claiming the economy could slow if interest rates were not lowered immediately.

“‘Preemptive Cuts’ in Interest Rates are being called for by many. With Energy Costs way down, food prices (including Biden’s egg disaster!) substantially lower, and most other ‘things’ trending down, there is virtually No Inflation,” Donald Trump wrote on his Truth Social platform on Monday night.

“With these costs trending so nicely downward, just what I predicted they would do, there can almost be no inflation, but there can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW.

He continued: “Europe has already ‘lowered’ seven times. Powell has always been ‘To Late,’ except when it came to the Election period when he lowered in order to help Sleepy Joe Biden, later Kamala, get elected. How did that work out?”

Last week, Trump threatened Powell faced “termination” soon, after the Federal Reserve chair said the bank would take a wait-and-see approach to interest rates in the face of economic uncertainty.