US President Donald Trump has eased pressure on the Federal Reserve by refraining from attacking the dollar as part of his trade negotiations, bringing relief to the global economy. In a surprise move, Trump announced that the US would remain committed to its participation in international organizations such as the IMF and World Bank.
The decision signals that policymakers have little alternative but to maintain the current dollar-based system, which has been the backbone of global finance for decades. This move is seen as a positive development by investors and economists, who had been bracing themselves for potential disruptions to the dollar’s dominance.
As the world breathes a sigh of relief, Trump’s decision underscores the dollar’s enduring influence in international trade and finance. With this move, the US economy appears more stable, and global markets seem poised to stabilize as well.
Source: https://www.reuters.com/business/finance/world-breathes-sigh-relief-trump-spares-fed-imf-2025-04-26