N※N

Trump's attacks on the Fed are hurting the dollar and driving up the price of gold | Fortune

  //stocks-investing.news-articles.net/content/202 .. ar-and-driving-up-the-price-of-gold-fortune.html
  Published in Stocks and Investing on Wednesday, September 17th 2025 at 8:33 GMT by Fortune
          ^{🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source}

Trump, the Fed, the Dollar and the Gold Market: A 2025 Snapshot

On September 17, 2025, Fortune published a timely analysis of the intertwined forces shaping today’s financial markets. The piece, “Trump, the Fed, the US Dollar and Gold Price,” dissects the recent comments from former President Donald J. Trump, the Federal Reserve’s monetary policy stance, the performance of the US dollar against a basket of foreign currencies, and the implications for gold—a classic safe‑haven asset that often moves in the opposite direction of the dollar.

1. Trump’s Vocal Re‑entry into Monetary Policy Debate

Former President Trump has been vocal for years about what he sees as “unnecessary” monetary easing. In this article, he is quoted as saying on his newly‑launched Twitter‑style platform, “The Fed is bleeding our economy, and it’s time to bring the rate back up. The dollar is getting too weak, and that hurts our jobs.” These remarks, though rhetorical, resonate with a segment of the electorate that believes inflation and wage‑price spiral have eroded purchasing power.

Trump’s comments came on the heels of a recent congressional hearing where he testified that the Fed’s “policy rate is too low to prevent a cost‑of‑living crisis.” The article notes that the hearing, held in Washington, D.C., was a “public relations exercise,” but it underscores how Trump's narrative is being amplified by social‑media influencers and fringe think‑tanks. The piece also links to the full hearing transcript, which includes testimony from Treasury officials who caution that abrupt rate hikes could trigger a recession.

2. The Federal Reserve’s Current Policy Framework

Fortune’s authors provide a concise overview of the Fed’s policy path. At the time of writing, the Federal Open Market Committee (FOMC) had kept the policy rate at 5.5% for six consecutive quarters—its highest level since 2000—after a series of aggressive hikes aimed at taming inflation that peaked at 5.3% in late‑2024. The Fed’s latest statement, published in March 2025, reiterated its commitment to “balance the trade‑off between price stability and maximum employment,” while hinting at “a potential pause in the future if inflation continues to accelerate.”

The article links to the official Fed minutes, which detail the board’s unanimous consensus that the inflation outlook remains “moderately adverse.” Economists quoted in the piece (from the University of Chicago’s Monetary Policy Center) argue that the Fed is likely to keep rates unchanged for the next 12 months, but they acknowledge that a sudden shift could destabilize the market.

3. Dollar Dynamics: Strengthening Amid Rising Rates

The dollar’s strength is a central theme. The piece points out that the U.S. dollar index (DXY) rose 0.8% in the week after Trump’s remarks, reaching 103.6—its highest level since early 2024. This rally is partly attributed to the “rate‑premium” effect: higher U.S. rates make dollar‑denominated assets more attractive to foreign investors.

The article follows a link to the European Central Bank’s latest policy brief, which shows that the ECB has kept its rates at a modest 2.0%. The disparity in policy rates has tightened the spread, pushing capital flows into U.S. Treasuries and boosting the dollar. The piece also cites a Bloomberg chart that illustrates the inverse relationship between the dollar index and gold price over the past year, reaffirming that when the dollar gains, gold often loses.

4. Gold’s Reaction: A Mixed Picture

Gold, traditionally viewed as a hedge against inflation and currency devaluation, has seen a complex reaction to the recent monetary environment. The article reports that the spot price of gold was $2,310 per ounce at 10:00 AM ET, up 0.5% on the day but down 4.5% on the week. The writers note that while the dollar’s appreciation and higher interest rates exert downward pressure on gold, other risk‑off factors—such as heightened geopolitical tension in the Middle East—have kept investors interested in the precious metal.

A link to the London Bullion Market Association (LBMA) monthly report confirms that gold’s total monthly volume remains steady, suggesting a persistent underlying demand. The article further references a research note from Goldman Sachs, which argues that gold may rebound if the Fed begins to signal a “softening” of its stance or if inflation starts to creep up again.

5. The Confluence of Politics, Policy and Precious Metals

The Fortune article skillfully weaves together how Trump’s political messaging, the Fed’s policy narrative, and the dollar’s performance collectively influence gold’s trajectory. It emphasizes that political rhetoric can amplify market sentiment, even if it does not translate into immediate policy change. The piece also reminds readers that gold, unlike bonds or equities, is highly sensitive to the dollar’s strength—a fact that is starkly evident in the current market environment.

The authors conclude by cautioning that while Trump’s calls for higher rates may resonate with a subset of voters, the Fed’s path remains data‑driven. They suggest that investors should monitor both macro‑economic indicators (inflation, employment) and geopolitical developments to gauge gold’s potential. The article also provides a “watch list” of upcoming events: the Fed’s next FOMC meeting in October, the upcoming U.S. inflation report, and the Middle East diplomatic talks.

Bottom Line

In the world of finance, the interplay between political voices, central‑bank policy, currency movements, and commodity prices is as critical today as ever. Trump’s rhetoric continues to keep the conversation about monetary policy in the public eye, the Fed’s steady rate path underscores its commitment to fighting inflation, the dollar’s strength reflects capital flows in favor of higher yields, and gold remains a barometer of investor risk appetite. For anyone tracking the markets in 2025, understanding these interconnections—highlighted in Fortune’s September 17 article—is essential for making informed investment decisions.