US markets are witnessing a shift in confidence, with governments and investors losing faith in the dollar and bonds. Just two months into Donald Trump’s second term, American financial dominance is facing significant challenges.
The President’s repeated attacks on the Federal Reserve have heightened concerns about US economic leadership. The most explicit threats yet to fire Chair Jerome Powell have only exacerbated the situation.
In light of these developments, investors are reassessing the traditional havens that were once considered safe during times of stress – the dollar and Treasury bonds. This reappraisal comes after an initial anticipation of a ‘Trump trade’, which aimed to turbocharge US exceptionalism. However, it now appears more like a ‘sell-America’ strategy.
The US dollar and bonds, pillars of American financial hegemony for nearly a century, have rarely looked weaker.
Source: https://www.bloomberg.com/news/features/2025-04-21/trump-s-trade-war-puts-us-dollar-bonds-safe-haven-status-at-risk