The dollar tumbled on Monday as investors reacted to fresh concerns over the independence of the Federal Reserve, following reports that President Donald Trump is exploring ways to remove Chair Jerome Powell.
According to Reuters, Trump said Powell's termination “cannot come fast enough,” while White House economic adviser Kevin Hassett confirmed the administration is studying its options. The developments added pressure on the dollar, which slid to a 10-year low against the Swiss franc at 0.80695 and crossed $1.15 against the euro for the first time since late 2021.
Thin trading, with major markets closed for Easter Monday, amplified the moves. Against a basket of currencies, the dollar sank to 98.164, its weakest level in three years. The dollar also hit a seven-month low of 140.615 yen, while the British pound climbed to $1.3395, its highest level since September.
The New Zealand dollar rose above $0.6000 for the first time in five months, later trading around $0.6013.
Analysts said the bigger threat is not Powell's removal itself but the perception that the Fed's independence could be compromised. Vishnu Varathan of Mizuho told Reuters that even the hint of political interference could damage confidence in U.S. monetary policy.
Broader concerns about trade tensions and tariffs have already weighed on U.S. assets, pushing investors toward other currencies. In Asia, China kept its key lending rates steady for a sixth straight month but expectations for new stimulus are building as the U.S.-China trade war drags on.
