Story perspectives

US Dollar Plummets Amid Calls for Bigger Rate Cut

9/16/2025

Summary

Story summary

On September 16, the U.S. dollar fell to a four-year low against the euro amid rising expectations for a Federal Reserve interest rate cut.
President Trump called for a "bigger" rate cut from Fed Chair Jerome Powell, citing housing market concerns.
The Senate confirmed Stephen Miran as a Fed governor, potentially supporting a larger rate cut.
Labor market data raised worries about U.S. economic growth, impacting market sentiment toward monetary easing.
The euro rose 0.8% to $1.1853, driven by anticipated Fed policy changes and strong speculative positions against the dollar.

History

Historical Context

The 2008 U.S. financial crisis prompted the Federal Reserve to cut interest rates to near zero, significantly affecting the dollar's value. This crisis echoed past economic downturns, such as the Great Depression, where aggressive monetary policies were employed. Today, President Trump's call for further rate cuts highlights ongoing concerns about economic growth, reflecting the lasting impact of these monetary strategies on global currency dynamics.

1 of 2

Story summary

On September 16, the U.S. dollar fell to a four-year low against the euro amid rising expectations for a Federal Reserve interest rate cut.
President Trump called for a "bigger" rate cut from Fed Chair Jerome Powell, citing housing market concerns.
The Senate confirmed Stephen Miran as a Fed governor, potentially supporting a larger rate cut.
Labor market data raised worries about U.S. economic growth, impacting market sentiment toward monetary easing.
The euro rose 0.8% to $1.1853, driven by anticipated Fed policy changes and strong speculative positions against the dollar.

1 / 2