The dollar has dropped to a three-year low after a report that Donald Trump is considering moving up the announcement of his choice for the next Federal Reserve chair, Jerome Powell.
Today, the dollar fell 0.6 percent against the pound and the euro, hitting its lowest point since early 2022. Meanwhile, the euro surged as much as 0.7 percent against the dollar to $1.174 — its strongest level since September 2021. The pound also rose by as much as 0.7 percent to $1.376.
The announcement comes after intense tension between Trump and the Fed Chair, with the President accusing Powell of being “too slow” to cut interest rates, and on Tuesday calling Powell “very dumb,” following his address to Congress.
Finance experts are concerned that electing a new Fed Chair early could give the chosen person extra time to shape expectations about interest rate paths, potentially undermining Powell’s efforts in his remaining term.
Speaking from The Hague on Wednesday, President Trump said, “I know within three or four people who I’m going to pick.”
By CEO NA Editorial Staff