empty
26.06.2025 10:59 AM
Trump Again Criticizes the Fed for Being Too Slow

On Wednesday, the U.S. dollar sharply declined against major currencies after President Donald Trump stated that he has three or four candidates in mind to replace Federal Reserve Chair Jerome Powell.

"I know exactly who—three or four people," Trump said at a press conference in The Hague, where he is attending the NATO summit. "I mean, he's leaving fairly soon, thankfully, because I think he's terrible."

This image is no longer relevant

Such a statement from the head of state was instantly interpreted by the market as a signal of potential political pressure on the central bank. Investors, concerned about the Fed's independence and possible shifts in monetary policy for political purposes, rushed to lock in profits and sell off dollar assets. This sudden wave of selling drove the U.S. dollar lower against the euro, yen, British pound, and other key currencies. At the same time, U.S. Treasury yields declined, further indicating a loss of confidence in the American economy.

The uncertainty surrounding the future leadership of the Fed is causing nervousness in the financial markets. Investors are unsure what direction the next chair will take in terms of monetary policy and what measures will be adopted to combat inflation and support economic growth.

Trump did not name any specific successors for the central bank role or give a timeline for the decision. Powell's current term as Fed Chair expires in May 2026. Earlier this month, the president mentioned that he was reviewing candidates and that names would be revealed "very soon."

Some of the president's allies have reportedly pushed for Treasury Secretary Scott Bessent to take the position. Trump has also recently praised former Fed Chair Kevin Warsh, calling him "very highly regarded."

Trump's pressure on the Fed appears aimed at lowering interest rates. He has repeatedly criticized the central bank for keeping rates unchanged and has argued that doing so unnecessarily increases borrowing costs for the U.S. government. He believes the Fed is wasting money by maintaining higher rates.

Last week, the Fed held interest rates steady in the 4.25%–4.5% range, where they have been since the beginning of the year. Most policymakers indicated they expect to cut rates by half a percentage point only by the end of 2025.

Trump's comments came a day after Powell testified before the House Financial Services Committee, defending the Fed's stance and emphasizing that the central bank should not rush to adjust its policy. Before lowering rates, Powell said, it is important to assess how the administration's economic agenda—especially the broad tariffs on trade partners—is affecting inflation.

The president frequently changes aspects of his tariff policy, which complicates the Fed's job. The administration is currently negotiating with several trade partners ahead of the July 9 deadline, but so far no tangible progress has been made.

EUR/USD Technical Outlook

Buyers now need to focus on breaking through the 1.1715 level. Only then can they aim for a test of 1.1750. A move beyond that could open the way to 1.1775, but achieving this without support from major market participants may prove difficult. The furthest target is the 1.1810 high. If the instrument declines to around 1.1670, I expect stronger interest from large buyers. If none appear there, it may be better to wait for a test of the 1.1630 low or consider entering long positions from 1.1585.

GBP/USD Technical Outlook

Pound buyers need to overcome the nearest resistance at 1.3730. Only then can they aim for 1.3770, above which further gains will be hard to achieve. The furthest upward target is 1.3820. If the pair declines, bears will attempt to regain control at 1.3680. A successful break of this range would deal a serious blow to the bulls and push GBP/USD down to the 1.3640 low, with a potential move toward 1.3590.

Jakub Novak,
Analytical expert of InstaTrade
© 2007-2025

Recommended Stories

GBP/JPY. Analysis and Forecast

During the European session on Monday, the GBP/JPY currency pair is approaching the 198.30 level. The pair finds some support from UK housing data: in June, house prices rose

Irina Yanina 19:40 2025-07-07 UTC+2

XAU/USD. Geopolitical Risks May Provide Additional Support to the Safe-Haven Precious Metal

Today, gold is displaying an intraday bearish tone despite rebounding from the $3300 level. Strengthening demand for the US dollar remains the primary factor pressuring gold, limiting its upward movement

Irina Yanina 19:09 2025-07-07 UTC+2

Bitcoin leads turbulent life

Beneath the calm surface of BTC/USD lie turbulent underwater currents that are reshaping the cryptocurrency market structure. Still waters run deep. On the surface, it seems that life

Marek Petkovich 15:48 2025-07-07 UTC+2

USD/JPY. Analysis and Forecast

The USD/JPY pair maintains a bullish bias, staying above the psychological level of 145.00, reflecting intraday selling pressure on the Japanese yen amid U.S. dollar strength. Investors are concerned that

Irina Yanina 12:59 2025-07-07 UTC+2

USD/CAD. Analysis and Forecast

On Monday, the USD/CAD pair continued its upward movement for the second day in a row. This rise is driven by a combination of factors. Crude oil prices initially declined

Irina Yanina 12:39 2025-07-07 UTC+2

GBP/USD. Analysis and Forecast

The GBP/USD pair began the new week attempting to hold the key psychological level of 1.3600. However, amid mixed fundamental factors, it has not been successful so far. The British

Irina Yanina 12:14 2025-07-07 UTC+2

Three days left to avert tariffs

As July 9, the deadline set by Trump, approaches, the United States main trading partners spent the weekend rushing to finalize trade agreements or lobbying for more time. Meanwhile, Treasury

Jakub Novak 11:24 2025-07-07 UTC+2

Investors see no alternatives

Uncertainty is commonly the enemy of investment, but not in 2025. A double dose of unpredictability – from geopolitics and White House tariffs – hasn't stopped the S&P 500 from

Marek Petkovich 11:17 2025-07-07 UTC+2

What to Watch on July 7th? A Breakdown of Fundamental Events for Beginners

Very few macroeconomic publications are scheduled for Monday, and none of them are significant. Let us recall that Friday was practically a semi-holiday, as the United States celebrated Independence

Paolo Greco 08:29 2025-07-07 UTC+2

GBP/USD Overview on July 7, 2025

The GBP/USD currency pair remained nearly flat throughout Friday, as the U.S. trading session was essentially inactive on that day. There were no macroeconomic publications, and the market chose

Paolo Greco 07:25 2025-07-07 UTC+2
Can't speak right now?
Ask your question in the chat.
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaTrade anyway.

We are sorry for any inconvenience caused by this message.