Did you know the US dollar has suffered its worst start to the year since 1973? Yes, you read that right! Under Donald Trump’s leadership, the dollar has dropped a whopping 10% in the first six months of the year — the worst performance since the end of the Bretton Woods system. How did this happen? Trump’s chaotic trade policies, including the introduction of so-called “reciprocal tariffs” and unpredictable negotiations with countries like Canada, have thrown the global trade system into utter chaos.
But wait, there’s more! Trump has openly attacked the independence of the Federal Reserve, calling Fed Chair Jerome Powell “stupid” and “stubborn” because he refused to cut interest rates by a massive 3 percentage points, even though rates currently sit between 4.25% and 4.50%. Lower rates would further weaken the dollar, but Trump isn’t backing down.
The Senate is now preparing to pass Trump’s tax package, which will increase the deficit by a trillion dollars over the next decade, putting even more pressure on the US currency. Meanwhile, the Fed is hesitating on cutting rates as tariff-driven inflation threatens to rise.
All in all, Trump’s policies are like a tornado that has wrecked the dollar, with consequences felt worldwide. Will the dollar recover, or is even bigger chaos on the horizon? Only time will tell. What do you think about this economic circus? Drop a comment — maybe together we’ll figure it out!
