On February 3, The Washington Post published an analysis warning about macroeconomic risks threatening the world's largest economy. The newspaper commented that President Trump's characteristic management style is directly negatively impacting the strength of the USD.
Statistics show that since Mr. Trump officially returned to the White House in January 2025, the USD has lost more than 10% of its value against other major currencies. This weakening is not just a temporary phenomenon but is predicted to be an alarming long-term trend.
Economist Robin Brooks, a senior fellow at the Brookings Institution and formerly working at the International Monetary Fund (IMF), made a bleak forecast about the future of the greenback. He believes the USD will fall by about another 10% this year.
Explaining the cause of this decline, Mr. Brooks pointed directly to the concern of global investors. According to him, the financial market always has an instinctive aversion to the current type of policy chaos.
The Washington Post emphasized that the core reason for the USD's plunge is the spreading effect from Mr. Trump's improvisational policy-making process. The US leader often makes unexpected decisions, sometimes suddenly imposing, sometimes lifting tariffs.
Besides, there are unpredictable military moves aimed at an increasingly long list of countries. This instability has caused the financial market to fall into a state of constant tension.
Many foreign investment managers have really felt tired of the rapid changes from the US. Although international investors are not in a hurry to completely abandon the USD because there is no worthy replacement, their confidence in this currency has declined.
Analysts warn that the weakening trend of the USD is still clearly present. This poses a double risk for the US, both reducing its international position and risking undermining domestic inflation control efforts as import prices become more expensive.
