Political Pressure from Trump May Keep Fed Behind Curve, Impact USD
Trump’s sustained criticism of the Fed is raising concerns that policymakers may delay easing, exacerbating the central bank’s lag in responding to economic conditions. The Fed faces a dilemma: cutting rates quickly risks accusations of political bias, while waiting too long could worsen economic trends.
The dollar index has already fallen nearly 10% this year to 97.64, while bitcoin has surged 24% to $115,600, reflecting investor shifts toward dollar-denominated alternatives amid policy uncertainty.
