Dollar hit its three year low after Trump’s statements about Fed chief

The US dollar is at its lowest level in three years due to Trump’s intentions to oust Federal Reserve chairman, which caused the deterioration of investor’s confidence in the US economy. 

The reasons for disagreements between Trump and Powell were differences in view on monetary policy. The President demands its immediate easing. However, the central bank's head Powell stated on Monday that unreasonable rate cuts may lead to increasing inflation.

According to investment director of North Star Investment Management Eric Cuby, the tension between the President and the central bank chairman reached its “dead point”. In his opinion, it can have a negative impact on the country's economy. 

Joseph Capurso, the head of international and sustainable economics at Commonwealth Bank of Australia, assumes that the possible undermining of the US monetary policy’s independence continues to weigh on the US currency.