Amid the trade war, a ballooning deficit, and a sharply falling dollar, investors are finally sweating the math
by Catherine Baab
Quartz
In 2025, the U.S. dollar posted its steepest January-to-June drop since currencies began floating freely in the 1970s. It’s now down more than 10% against a basket of peers.
The plunge reflects mounting investor anxiety over President Donald Trump’s fiscal and trade agenda, including a “Big Beautiful” spending bill that locks the federal deficit in at 6-7% of GDP, or about double the postwar average. All this amid Trump’s loud claims of being a “cost cutting Republican.” But with U.S. debt now above $36 trillion, markets appear to be genuinely questioning how long the dollar can retain its reserve-currency crown.
Here’s a quick look at related price action and effects across asset classes and populations.