USD is once again under pressure after Donald Trump’s explosive weekend interview rattled market confidence and set the stage for another potential dollar downturn. Appearing on Fox News’ “Sunday Morning Futures,” Trump took aim at what he called a “big ugly bill,” voicing doubts it would pass by the July 4 deadline—and stirring fears about the future of U.S. fiscal policy.

USD Faces the Heat Amid Trump’s Fed and Debt Comments

It wasn’t just legislative gridlock that grabbed headlines. Trump warned of a massive 68% tax increase if the bill fails, then turned his fire on the $9 trillion U.S. debt maturing this year. “I don’t want to have to pay for 10 years debt at a higher rate,” he said, adding that he plans to put someone in charge of the Fed who will “lower the rate.” These words signal more than political theater—they suggest a push for easier monetary policy, which markets see as a bearish blow to the already-weakened dollar.

Momentum Builds Against the Dollar

The numbers tell the story: the USD has plunged 10% in 2025 so far, its worst first-half performance in 40 years. The DXY chart shows it barely holding above key support, with a clear downtrend in place.

This isn’t a dip—it’s a decline fueled by political unpredictability, inflation worries, and the specter of a reshaped Federal Reserve. With confidence shaken and policy direction unclear, the greenback could be in for yet another brutal leg lower.

The dollar’s struggle isn’t just technical—it’s deeply political. And with more uncertainty on the horizon, traders would be wise to watch what Trump says next.

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