The U.S. dollar index (DXY) continued its downward trend on Monday, as Trump’s tariff policies and attacks on U.S. Federal Reserve Chair Jerome Powell weighed on investor sentiment.

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DXY tumbled to as low as 97.92 on Monday, before paring some of the losses to hover near the 98.47 level at the time of writing. This is the lowest level since March 2022, according to TradingView data.

At the same time, spot prices of gold touched a new high, crossing the $3,400 mark for the first time. The yellow metal has surged almost 30% to date.

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At the time of writing, spot gold prices were hovering at $3,424 an ounce, surging nearly 3% for the day so far.

Last week, Powell expressed concerns that Trump’s tariffs were larger in scope than anticipated.

In response, the U.S. President continued his criticism of Powell. After calling him “too late and wrong” on rate policy last week, he referred to the Fed chair as a “major loser” on Monday in a post on his social media platform, Truth Social.

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The President warned that the U.S. economy could stall without immediate rate cuts.

Andy Laperriere, head of U.S. policy at Piper Sandler, said in an interview with CNBC that it would be a mistake to dismiss Trump’s rhetoric against Powell – the President is considering whether to fire the Fed chair.

“We are looking at a President who is determined to turn Washington upside down. Investors who ignored Trump’s own words proclaiming higher tariffs were ill-served by doing so,” said Laperriere.

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Earlier, JPMorgan CEO Jamie Dimon warned that the U.S. economy is facing “considerable turbulence,” with factors such as tariffs and an elevated fiscal deficit weighing down on growth prospects.

At the time of writing, the SPDR S&P 500 ETF Trust (SPY) was down 2.9%, while Invesco QQQ Trust (QQQ) fell 3.1%.

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