Worries on global markets: how Trump's actions put the Fed and the dollar at risk

Foreign investors are concerned about US monetary policy following Donald Trump's criticism of Fed Chairman Jerome Powell. Although Trump has stated that the likelihood of Powell's dismissal is low, his words that «such an option is not excluded» have increased tensions. Analysts warn that even discussing this issue could cause a crisis of confidence in financial markets.

In Tokyo and Beijing, Powell's resignation is considered a matter of time. Japan and China, which own more than $1.8 trillion in U.S. Treasury bonds, will be at the center of events if Trump takes decisive action. The conflict over the Fed could lead to a jump in bond yields and a fall in the dollar, which would create significant risks for global markets.

Experts also warn that interference in the Fed's work could undermine the dollar's status as the world's reserve currency and lead to a diversification of central banks' assets. This threatens to increase inflation and weaken the American economy. Despite these risks, demand for U.S. bonds remains high, with Canada acquiring a record $65.8 billion in May.