4/23/2025–|Last update: 4/23/202503:25 PM (Mecca time)
US President Donald Trump’s statement on Tuesday not to show the dismissal of the Federal Reserve Chairman, Jerome Powell, had a rapid and multiple positive economic impacts on the markets, as investors breathed a sigh of relief amid hopes for reducing tension in the largest global economy.
The markets have faced since the beginning of the week due to the idea that the independence of the reserve council was threatened after Trump’s repeated criticisms of Powell because of the failure to reduce interest rates since the president returned to the White House in January.
Trump’s statement would reassure investors and reduce concerns about the potential politicization of monetary policy, which may lead to an increase in stocks, stability in the bond market, and support for the strength of the dollar.
Below are the most prominent effects of Trump’s statements:
- The rise of the dollar
Investors have returned to the demand for the dollar, which has holed in the past few weeks near the lowest level in three years, with investors doubting his position as a safe haven given the fluctuation of Trump’s commercial policies and its potential impact on the American economy.
The dollar rose quickly at the beginning of Asian trading today, Wednesday, but settled after that. The dollar rose more than 1% against the Japanese currency to 143.21 yen in early transactions. The euro fell 0.25% to $ 1.1389, down from the level of $ 1.15, which he recorded this week and constituted the highest level in about three and a half years. In exchange for the Swiss franc, the dollar in the latest trading rose to 0.8222 francs after jumping more than 1% in Asian transactions. - High oil
Oil rose 1% in early day’s trading, and the market received support after Trump retracted his threats to dismissal. Brent crude futures rose 61 cents, or 0.9% to 68.05 dollars a barrel, while the price of West Texas Intermediate crude was $ 64.27 a barrel, an increase of 60 cents or 0.94%. - Decrease
Gold prices fell at the beginning of today’s dealings after Trump retracted his threats to dismiss Powell, which negatively affected the attractiveness of the yellow metal, which is a safe haven. By 05:52 GMT, gold came down in instant transactions 1.9%to $ 3318.71 an ounce. US gold futures fell 2.7% to $ 3328.10. - Petio’s height
For encrypted currencies, Bitcoin increased by more than 3%to 94284 dollars, exceeding 90 thousand dollars for the first time since last March. - The recovery of financial markets
After Trump’s comments, which calmed down concerns about the independence of the federal reserve, the Asian markets witnessed a remarkable increase. The Japanese Nikai index increased by 2.3%, while the main index in South Korea recorded 1.2%gains.
In Europe, the stocks rose today, Wednesday, in early trading, the European Stoxx 600 index rose 1.8%. Indicators in Germany, France, Spain and Britain recorded between 1.9 and 2.7%.
The global markets had recently witnessed turmoil for fear that the US Central Independence would be threatened after a repeated attack by Trump on Powell because of the lack of interest rates since Trump returned to the White House in January. The continued political pressure on the central bank may lead to future fluctuations in the markets and affect the confidence of investors in the independence of politics.
