Dollar confidence weakens as China expands yuan amid US–EU strain

Beincrypto reports confidence in the US dollar has weakened after intensified scrutiny of the Federal Reserve and Department of Justice involvement, while mounting US–EU tensions over Greenland are deepening geopolitical risk and opening opportunities for China to expand yuan-denominated trade and payments.

The DOJ's action involving Federal Reserve Chair Jerome Powell and a criminal investigation has been widely interpreted as an attempt by the Trump administration to pressure the Fed into cutting interest rates despite economic data and the Federal Open Market Committee signaling no such need.

The escalation has unsettled investors and raised questions about central bank independence. Meanwhile, the US threatened a 10% import tax on goods from eight European countries after leaders rejected a US interest in Greenland; EU heads are set to meet in the coming days to discuss a coordinated response, and US Treasury Secretary Scott Bessent told reporters it "would be very unwise" for the bloc to pursue retaliatory measures.

Key Topics

Business, Federal Reserve, Jerome Powell, European Union, Greenland, Yuan