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EUR/USD sticks to gains near 1.1500 as the US Dollar has been battered by Trump’s attack on the Fed’s independence. Trump blames Fed Powell for the potential US economic slowdown. The ECB is expected to cut interest rates in June due to escalating downside risks to Eurozone inflation. EUR/USD trades firmly around 1.1500 during European trading hours on Tuesday. The major currency pair is taking a sigh of relief after a strong rally in the last few weeks. The pair seems to be gearing up for a fresh upward move as the US Dollar (USD) is expected to continue facing the burden of growing tensions between the Federal Reserve (Fed) and United States (US) President Donald Trump over the monetary policy. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, aims to find a cushion after refreshing a three-year low near 98.00. US President Trump continues to criticize Fed Chair Jerome Powell for not lowering interest rates and warned that the economy could face a downturn if they are not reduced immediately.  “With these costs trending so nicely downward, just what I predicted they would do, there can almost be no inflation, but there can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW,” Trump wrote in a post on TruthSocial on Monday. Meanwhile, Jerome Powell has been supporting keeping interest rates in the current range of 4.25%-4.50% until it becomes clear whether inflation led by new economic policies is persistent or short-lived.  US President Trump has also threatened to remove Powell over a year before the completion of his term for not lowering interest rates. It is still debatable whether Donald Trump can sack Powell, but the situation will remain the same as the decision on…

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Filed under: News - @ April 22, 2025 10:25 am