Domestic Turmoil Shakes Confidence in the Dollar
The U.S. faces severe internal turmoil due to a government shutdown and growing political division, directly undermining confidence in the U.S. dollar. The administration’s decisions to cut spending, lay off employees, and grant tax breaks to the wealthy sparked massive protests nationwide. This tense climate has raised investor concerns about economic stability and reduced the appeal of dollar-denominated assets. Analysts warn that if the shutdown continues, it could slow the economy and weaken global trust in the dollar.
Conflicting Policies Confuse the Market
Contradictory fiscal policies—favoring the wealthy while cutting vital budgets—have created uncertainty about America’s economic direction. While the administration defends its actions as long-term reform, economists argue they strain the middle class and weaken domestic demand. Meanwhile, political gridlock continues to delay budget approvals and government payments, increasing unemployment risks and eroding consumer power. This has weighed heavily on the dollar’s performance against major currencies.
Global Ripple and Challenges for the Dollar
The ongoing U.S. crisis gives rival powers a chance to advance de-dollarization plans. China, Russia, and BRICS members are accelerating local-currency trade settlements to strengthen their monetary influence. Though experts believe the dollar will remain dominant in the short term, repeated fiscal and political crises could speed up a gradual global monetary shift. Markets now await how Washington will restore confidence in its financial and economic policies.
