Federal Reserve links dollar decline to reassessment of U.S. growth after trade-policy changes
Reporting and findings
- documented
The Federal Reserve's June 2025 Monetary Policy Report said the broad dollar index had declined as U.S. trade-policy changes reportedly prompted investors to reassess relative U.S. growth prospects. Depreciation extended across advanced and emerging-market currencies; the report also said the index remained elevated in real terms against its historical average.
- Board of Governors of the Federal Reserve System: Monetary Policy Report, June 2025: Recent Economic and Financial DevelopmentsSection 'and the exchange value of the dollar has decreased'; Figure 46; equivalent PDF printed page 35
Summary and current status
The June 2025 report describes a broad currency decline while distinguishing it from the dollar's longer-run real value.
Published assessment covering exchange-rate data through June 13, 2025
People and organizations
- Donald J. TrumpPresident whose administration changed U.S. trade policy in 2025