** Trump vs. Powell - again and again... **

Just as investor sentiment was recovering from the latest geopolitical jolt, buoyed by the Israel-Iran ceasefire, President Donald Trump rattled markets again with an attack on the Fed chair that revived worries over the central bank's independence.

The result has been another bout of dollar selling, which pushed the euro to its strongest level since November 2021 and the Swiss franc to its highest in a decade.

Earlier this month, Trump openly contemplated firing Powell and * even mused about making himself the Fed chair, * although he subsequently backed off.

Trump has repeatedly chastised Powell for not cutting interest rates and said he was "terrible" in the latest attack on Wednesday, eroding investor faith in the U.S. central bank's independence in setting policy.

All that uncertainty, along with Trump's chaotic trade policies and their potential threat to economic growth, have taken a toll on the U.S. dollar as investors look to move their money elsewhere.

Trump's tariffs are coming back onto the markets' radar as the clock ticks down to his July 9 deadline for trade deals.

Source: Yahoo/Reuters

...

Let's hope, it will end up like his papal idea, and not threaten the Fed's independence...