Dollar Jumps After Trump Backs Down Threat to Fire Powell

The dollar jumped broadly against major currencies on Tuesday, as investors breathed a sigh of relief after US President Donald Trump backed down from his threat to fire Federal Reserve Chairman Jerome Powell.

Markets have been in turmoil this week over concerns about a threat to the Fed’s independence, amid Trump’s repeated criticism of Powell for not cutting interest rates since his return to the White House in January.

But on Tuesday evening, Trump appeared to back down. “I don’t intend to fire him,” he told reporters in the Oval Office, according to Reuters. “I hope he’ll be a little more aggressive in implementing his idea of ​​lowering interest rates.”