The intertwining factors of the Trump administration's tariff policies, controversies surrounding U.S. Federal Reserve policies, and the destabilization of the dollar are increasingly contributing to the instability of the American economy, which may potentially trigger a recession. Steve Forbes, chairman and editor-in-chief of Forbes, stated on the April 21 episode of Varney & Co. that the current monetary policies and global trade situation have sent clear warning signals. Forbes pointed out that the dollar is facing severe devaluation pressure, which often heralds future inflation escalation. He analyzed, "Since 2023, gold prices have skyrocketed from $1,800 per ounce to $3,400, indicating that the dollar is about to weaken, and market turbulence and price increases are almost unavoidable. Reflecting on the experiences of the 1970s, if immediate action is not taken now, the consequences may be unmanageable. Unfortunately, I see no authorities with constructive solutions."

According to a Reuters report, all three major Wall Street indices fell by over 1% on the 21st, while the dollar plummeted to a three-year low. At this time, President Trump continued to publicly criticize Fed Chairman Jerome Powell, adding to the market's existing turmoil already impacted by global trade and tariff tensions. Recently, Trump labeled Powell a "big loser" on his social media platform Truth Social, strongly advocating the Fed to cut rates prematurely. He previously also posted that Powell is "always too slow, always wrong," and stated that "the day Powell leaves cannot come soon enough," despite Powell's clear announcement that he would serve his term until May 15, 2026.

Forbes sharply criticized the Fed for fundamentally misunderstanding inflation and deemed its monetary policy framework seriously flawed: "The Fed does not grasp what the true causes of inflation are, mistakenly believing prosperity leads to inflation, which completely reverses causality. The current policy direction is incorrect and cannot solve the uncertainties and price increases caused by tariffs." He further explained, "Lowering interest rates does nothing for current issues, and the Fed should focus on stabilizing the dollar's value, but it is actually powerless against other inflation-inducing factors."

According to an analysis report from Allianz released last week, since Trump announced the so-called "Liberation Day" tariff policy, investors momentarily shifted to traditional safe assets like U.S. Treasury bonds and the dollar. However, as the market recognized the scope and impact of the so-called "reciprocal tariffs," concerns about inflation grew, and expectations for rate hikes were pushed back as funds exited the safe-haven markets. "If this trade dispute is not resolved within the next 90 days, prices are bound to rise, as people still need to buy necessities; trade will not stop," Forbes speculated that future countries might reach agreements on certain products and delay the implementation of tariffs on others, but the current uncertainty has caused businesses to postpone investment and procurement decisions, "which is a fatal blow to the economy and could lead the U.S. into an unnecessary recession."