The U.S. dollar continues its decline, losing over 10% of its value year-to-date, primarily due to President Trump's criticism of Federal Reserve Chair Jerome Powell. Amid speculation that Trump may soon replace Powell, investor concerns about the Fed's independence and potential interest rate cuts grow. Despite the dollar's drop, U.S. equities, notably the S&P 500, remain strong. Market analysts highlight the accumulated negatives against the dollar, compounded by Trump's public disdain for Powell and his economic policies.
"The fleeting support for the greenback, born of geopolitical tensions and its traditional safe-haven appeal, has all but evaporated ... dollar negatives are stacking up."
"Trump hates Powell because Powell has declined to lower interest rates. In a series of posts on Truth Social, Trump has repeatedly insulted Powell."
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