TIME, June 2025
Americans’ wallets could be set to take a hit as the U.S. dollar has tumbled to a three-year low amid concerns about the stability and strength of the country’s economy. The dip could aid domestic businesses that export U.S. goods, but will make international travel and imports pricier for Americans. The U.S. dollar has already lost about 10% of its value this year, in contrast with the euro, which reached its highest level in nearly four years after gaining 0.4% on Tuesday.
The devaluation of the dollar, the world’s dominant reserve currency, on Thursday came after news outlets reported that President Donald Trump is considering announcing a new Federal Reserve Chair this fall, ahead of the end of current Chair Jerome Powell’s term. The Wall Street Journal first reported the news on Wednesday. The Fed has faced pressure from Trump to lower borrowing costs, but has stopped short of doing so in order to assess the potential impact of the President’s tariffs and keep unemployment low.
In addition to Trump’s tariffs, his “Big, Beautiful Bill” has contributed to uncertainty surrounding the U.S. economy. Economists have warned that the legislation could add more than $2.5 trillion to the federal debt, despite claims by the Administration that it would save money. Here’s what to know about the weakening dollar.
