GBP/USD EDGES HIGHER ABOVE 1.3350 AS TRUMP'S ATTACKS ON POWELL THREATEN FED'S INDEPENDENCE
GBP/USD EDGES HIGHER ABOVE 1.3350 AS TRUMP'S ATTACKS ON POWELL THREATEN FED'S INDEPENDENCE
The GBP/USD currency pair has strengthened, trading above the 1.3350 mark during the early Asian session on Tuesday, April 22, 2025.
GBP/USD Surges Amid Dollar Weakness.
The British pound has risen to its highest level since February 2022, reaching $1.34, as the U.S. dollar weakened to a three-year low.
President Donald Trump has intensified his public criticism of Federal Reserve Chairman Jerome Powell, labeling him a “major loser” and calling for immediate interest rate cuts to stimulate the economy.
Trump's remarks have raised concerns about the Federal Reserve's independence, with reports suggesting that his administration is exploring the possibility of removing Powell before his term ends in 2026.
Financial markets have reacted negatively to perceived political interference in monetary policy, leading to a sell-off in U.S. assets and a decline in the dollar's value.
The weakening of the U.S. dollar has provided support to the British pound, pushing the GBP/USD exchange rate higher above the 1.3350 level.
The uncertainty surrounding U.S. monetary policy and the potential erosion of the Fed's independence have contributed to broader market volatility, affecting various asset classes.
