Stocks and dollar slide as Trump's Fed attacks jangle nerves

[Bernardo de La Paz]

11. tRump is purposely weakening the US dollar to make US debt payment easier & thus richie tax cuts easier

He also wants interest rates to go down, very badly wants them to go down. However, his own goal tariff war is inherently inflationary at the start so bond rates are bouncing around without the kind of decline he wants. Treasury has to offer higher rates than otherwise because foreigners are now net sellers, increasing supply and forcing Treasury to keep rates up to make them attractive to rotate debt financing. Powell has to refrain from adjusting the Fed rate until it becomes clearer whether inflation comes back in or whether unemployment creeps up first.

When the contraction in world trade and contractions from reduced govt spending and labour disruptions start to bite, then expect Fed rate cuts to stimulate a self-harmed economy (from decisions at the top).

As to the ultimate course of the dollar, I'm a self-study observer, and haven't studied currency economics.