#NoticiasCripto 🚨Trump's policies weaken the dollar and surprise investors
At the beginning of the year, the bet was simple: Trump's economic plans would boost inflation, slow any possibility of cuts in Federal Reserve rates, and push the dollar even higher. That is not what happened. A Bloomberg index tracking the U.S. currency had its worst start to the year since 2005. The sell-off was deep. The shock was global.
Things escalated in April when Trump launched his "Liberation Day" tariffs — wide-ranging and aggressive sanctions that shook investor confidence. The impact was brutal. Concerns about a possible recession in the U.S. seized the market, and traders began to believe that Trump might be actively trying to weaken the dollar to help domestic industry.
That's a problem for the U.S. government. It still relies on foreign investors to finance its enormous debt. A weaker dollar means lower returns for those investors. It also means less faith in U.S. assets. JPMorgan strategist Meera Chandan said that the fading connection of the dollar with interest rates and stocks could reflect deeper cracks in its foundation. Her team expects another 2% drop in the strength of the dollar by year-end.