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 InstaForex
© 2007-2025
Summary
Urgency
Analytic
Pavel Vlasov
Start trade
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

EUR/USD Overview – July 28: Very little time left before August 1

The EUR/USD currency pair is maintaining a bullish tone on the 4-hour timeframe. While the British pound has shown a fairly sharp decline in recent days, the euro

Paolo Greco 03:48 2025-07-28 UTC+2

GBP/USD Overview – July 28: The Pound's Unexpected Collapse and Weak UK Data

The GBP/USD currency pair declined significantly on Friday. This drop in the British pound is somewhat puzzling, as there were no strong fundamental reasons behind it. We do not believe

Paolo Greco 03:48 2025-07-28 UTC+2

EUR/USD. The Hottest Week of July: FOMC Meeting, Core PCE Index, Eurozone Inflation, US GDP, and Nonfarm Payrolls

The upcoming week promises to be volatile. The economic calendar is packed with key fundamental events — including Nonfarm Payrolls, the FOMC meeting, eurozone inflation data, the ISM Manufacturing Index

Irina Manzenko 00:48 2025-07-28 UTC+2

GBP/USD Overview. Weekly Preview. Fed Meeting and Key Labor Market Data

The GBP/USD currency pair declined significantly at the end of last week. This sharp drop in the British pound raises some confusion, as there were no solid reasons for such

Paolo Greco 00:48 2025-07-28 UTC+2

EUR/USD Overview. Weekly Preview. Will the Euro Follow the Pound's Decline?

The EUR/USD currency pair maintains a bullish bias on the 4-hour timeframe. While the British pound has shown a notable decline in recent days, the euro

Paolo Greco 00:48 2025-07-28 UTC+2

Euro Currency – Weekly Preview

There will be few news events in Europe. However, they are not particularly necessary. The U.S. will have a very intense and diverse news cycle. As a result, market participants

Chin Zhao 00:48 2025-07-28 UTC+2

British Pound – Weekly Preview

For the pound, the new week promises to be very uneventful. No important data is expected from the United Kingdom, so all attention will shift to the dollar

Chin Zhao 00:48 2025-07-28 UTC+2

US Dollar – Weekly Preview

Here we are, finally turning to the dollar and the United States. Let's begin with the most important events. First and foremost — the Federal Reserve meeting. Although

Chin Zhao 00:47 2025-07-28 UTC+2

EUR/USD. Analysis and Forecast

Today, the EUR/USD pair is attempting to attract buyers. Despite the European Central Bank's decision on Thursday to leave interest rates unchanged, the euro is facing headwinds due to ongoing

Irina Yanina 13:20 2025-07-25 UTC+2

No Unity of Opinion Within the ECB Yet

Yesterday, the European Central Bank kept interest rates unchanged, citing risks stemming from the trade war with the U.S., the strong euro, and rising government spending. According to Governing Council

Jakub Novak 11:59 2025-07-25 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

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 InstaForex anyway.

We are sorry for any inconvenience caused by this message.