Assets controlled by the US dollar fell sharply before they recovered and became positive.
US stocks recorded a sharp loss on April 21st.
The dollar-controlled assets fell sharply before they recovered and became positive.
The US Dollar Index (DXY), which measures gold against a currency weighted basket, fell by more than 1% early in the day, but closed at 0.04%.
Michael Cahill, a senior currency strategist at Goldman Sachs Research, said changes in US trade policy are bleeding into the dollar, and tariffs could threaten exceptions to American investment.
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Officials in the administration say they are focused over a decade, especially as they are poised to refinance this year.
Interest rate discussion
President Donald Trump has repeatedly warned of slowing economic growth unless the US central bank lowers interest rates as quickly as possible.
“A “first-hand cut” interest rates is being called on by many,” Trump wrote on April 21, adding that there is “virtually no inflation.”
“These costs are so low that there’s little inflation just what I predict they’re going to do, but there could be a slowdown in the economy,” Powell said, “unless we’re cutting back on interest rates right now,” Trump said.
Kevin Hassett, director of the White House National Economic Council, told reporters on April 18 that the administration is pursuing a way to end Powell.
“The president and his team will continue to study the matter,” Hassett said.
Powell was first appointed to the US Central Bank by President Barack Obama, but previously said that exclusion was “not permitted under the law.” The Fed’s term of office will expire next year.
Federal Reserve Chair Jerome Powell will speak with Ragram Rajan, a professor of finance at the University of Chicago Booth School, at a Chicago Economic Club event held in Chicago on April 16, 2025. Vincent Alban/Getty Images
Charles Schwab’s chief bond strategist Kathy Jones said the president’s criticism of Powell could lead to higher long-term yields.
“Inventories are declining, bonds give in, the curve is steeper and the dollar, the lowest in two years. That’s what the market is thinking about the president “ends” Powell as the Fed’s chairman. Perhaps it’s about maintaining the similarity of the Fed’s independence for Powell and alternatives. ”
Over the past few weeks, monetary policymakers have shown that governments should change interest rates in the range of 4.25-4.5%, from government adjustments to fiscal, immigration, regulation and trade policies to become more clear.
“We may find ourselves in a challenging scenario where the goals of dual mandart are tense,” Powell said. The Fed is being charged with double dual missions of maximum employment and price stability.
Powell believes the Fed may move away from those goals “probably for the balance this year,” but he believes monetary policy is well positioned as patient.
It’s an act of balancing between two philosophies, according to Jay Woods, chief global strategist at Freedom Capital Markets.
“In Powell’s mind, perseverance should be practiced and the president now wants to quickly lower fees to strengthen the uncertain economic path,” Woods said in a memo sent to the Epoch Times by email.
“The activity may seem artificially high early, but it may drop by summer.
