The dollar staged a broad retreat on Thursday, as investor gloom over the lack of progress toward defusing the U.S.-China trade war reasserted itself following an interlude of optimism the previous day.

President Donald Trump is badgering the Federal Reserve to cut interest rates, but even if the Fed gave in to the pressure, it wouldn’t necessarily lead to lower borrowing costs for consumers

But President Donald Trump’s new declaration that he has “no intention” of firing Federal Reserve Chair Jerome Powell should — in theory, anyway — be very good news for bonds. It potentially lifts a huge cloud of uncertainty that has been depressing bond prices for weeks.

Whether the U.S. dollar will remain the world's reserve currency in the wake of President Donald Trump's trade war was a source of debate on Wednesday at the 2025 TIME100 Summit.

Trump said the sharp sell-off in bonds earlier this month didn't worry him, though he previously noted he'd been watching the sell-off.

For all his bravado on tariffs, President Trump still seems to have a soft spot for bull markets. Fueled by a volley of comments out of the White House related to trade and monetary policy, stocks have rallied across back-to-back trading sessions.