Key Takeaways
- DXY hit a 3-year low at 98.2 following Trump's efforts to remove Jerome Powell.
- Bitcoin rose to $87,586, its highest since April 2, amid dollar weakness.
- Trump's criticism of Powell includes claims of politically motivated rate decisions.
The US Dollar Index (DXY) fell to 98.2 on April 21, its lowest level since March 2022, following President Donald Trump’s renewed push to remove Federal Reserve Chair Jerome Powell.
This drop coincided with a sharp rally in Bitcoin, which surged to $87,586 — its highest price since April 2, also known as “Liberation Day” by Trump supporters.
Trump’s push against Powell
According to National Economic Council Director Kevin Hassett, Trump and his team are “actively exploring” Powell’s removal, criticizing the Fed for politically biased rate decisions.
Hassett accused the central bank of raising interest rates shortly after Trump’s election and later cutting them to benefit Democrats.
Trump, for his part, called Powell…
… always too late and wrong.
He even added that….
… Powell’s termination cannot come fast enough!
Market impact & reactions
The DXY’s decline spurred gains not only in Bitcoin, but also gold and other major currencies.
Economist Peter Schiff noted the dollar’s widespread weakness:
The euro is above $1.15. The dollar has also fallen below 141 Japanese yen and .81 Swiss francs… this is getting serious.
Concerns over Fed independence
With Powell’s term set to run until May 2026, the situation raises concerns about Federal Reserve independence.
However, investors reacted swiftly.
Bitcoin jumped 3.5% in a single day, driven by expectations that interest rate cuts — if Trump replaces Powell — could further weaken the dollar.
Sean McNulty, Derivatives Trading Lead at FalconX, commented:
USD weakness is driving the rally.
