Dollar's Dive: Economic Confidence Shaken Amid Trump's Fed Criticism

The dollar reached its lowest point in three years as President Trump's criticism of Federal Reserve Chairman Jerome Powell undermined investor confidence in the U.S. economy. Trump's attacks on social media have raised concerns about the Fed's independence, leading to a decline in the dollar and a global market shake-up.

The dollar plummeted to its lowest level in three years on Monday, rattled by renewed investor concerns following President Donald Trump's sharp criticism of Federal Reserve Chairman Jerome Powell. The president labeled Powell a 'major loser' on social media, demanding an immediate cut in interest rates.

Amid thin trading due to European and Asian market closures for Easter Monday, the dollar sank against a basket of currencies, hitting a decade-low against the Swiss franc and a seven-month low against the Japanese yen. Trump's threats to potentially remove Powell have further stressed the market, despite Powell's removal having a high procedural barrier.

Economists warn any encroachment on the Federal Reserve's independence could impair its ability to respond to inflationary pressures. Meanwhile, global markets remain volatile, influenced by Trump's ongoing trade war with China, exacerbating fears of a downturn in the U.S. economy.

(With inputs from agencies.)