Stock Futures & Dollar Falls as Trump Criticises Fed – Asia Market Wrap

The Dollar index plummeted to its lowest level since January 2024, and US stock-index futures slid after Trump criticised the Fed, raising doubts about its independence.

The US Dollar fell against all major currencies after National Economic Council Director Hassett warned Friday that Trump is considering firing Powell. Traders reported that these statements pushed hedge funds to sell the Dollar on Monday. Gold, which normally has an inverse connection with the Dollar, reached a record high. Treasuries fell, and the Yen rose.

Trump, enraged that the central bank has not moved to lower interest rates, stated on social media last week that Powell’s “termination cannot come fast enough!” According to academics such as Christopher Wong, attacking the Fed not only violates the concept of central bank independence, but it also risks politicising US monetary policy in a way that markets would find deeply disturbing.

The Euro and the Swiss Franc were among the greatest gainers among currencies, with the former reaching a three-year high. In commodities, oil fell as traders worried about the impact of the US-led trade war on energy consumption.

Trump told reporters that he could remove Powell if he wanted to. The president hasn’t said whether he plans to dismiss Powell or merely wants his tenure to finish in May 2026.