- The EUR/USD jumps more than 150 pips at 1,1721 after Trump suggested to say goodbye to the president of the Fed, Powell.
- CBS reported that US president, Trump, asked the Chamber’s Republicans if the Fed President Jerome Powell should be removed, citing the high cost of the renewal of the Fed headquarters.
- Trump criticizes Powell for a renewal of 2,000 million dollars from the Federal Reserve headquarters in Washington, DC, calling her unnecessary and extravagant.
The Euro jumps against the US dollar on Wednesday, with the EUR/USD shooting at 1,1721 after reports arose that the US president, Donald Trump, asked a group of Republicans of the Chamber if he should fire the president of the Federal Reserve (Fed), Jerome Powell. The news triggered a strong massive sale in the dollar, promoting the EUR/USD at its highest level in more than a week.
At the time of writing, the EUR/USD is quoted around 1,1650, having retreated slightly after reaching an intradic maximum of 1,1721. The pair rose more than 150 pips after the CBS report, which added a new layer of political uncertainty to the US monetary policy.
According to CBS News, Trump raised the idea of saying goodbye to Powell during a closed meeting with the camera’s Republicans on Tuesday, citing the excessive renewal costs at the Fed headquarters as possible reasons for removal. While it is not clear if the president can legally fire Powell, the news alone was enough to cause a strong mass sale in the US dollar.
The US dollar index (DXY) fell from a maximum of 98.91 to 97.90 after the news was known.
President Trump has repeatedly criticized Jerome Powell for maintaining “too high” interest rates, arguing that high financing costs are harming US growth and competitiveness. He has long pressed the Fed to adopt a more aggressive relaxation posture, especially as inflation begins to cool. Trump’s latest comments intensified that pressure, generating more doubts about the Fed’s ability to maintain independence. While the Central Bank continues to point out a cautious and data -based approach, the markets now fear that political interference can influence the next politics decisions, particularly with Trump openly asking Powell’s resignation before his term ends in May in May 2026.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
