Persistent Pressure from Trump on the Fed Could Slow Policy Response, Weakening the Dollar

Trump’s Fed Criticism Risks Backfiring, Could Spur Market Volatility

President Trump’s aggressive campaign against the Federal Reserve, including calls to fire sitting officials and push for rapid rate cuts, may unintentionally increase market risk. Analysts say the Fed, under intense political scrutiny, could lean toward caution, delaying rate reductions and keeping monetary policy out of sync with economic needs.

This dynamic could pressure the U.S. dollar further while boosting demand for alternative assets such as bitcoin and gold.