The Federal Reserve, after a series of rate cuts late last year, has left its benchmark policy rate on hold in the range of 4.25 per cent to 4.50 per cent since December.

Trump’s tariffs have rocked financial markets in recent weeks and also remain a big concern for investors.

US President Donald Trump has ramped up his criticism of Federal Reserve boss Jerome Powell. Source: AAP / Tom Williams/CQ-Roll Call/Sipa USA

“There’s this terrible stalemate between Trump and Powell, fomenting concern that there will be some sort of action taken to replace Powell, which would create a real panic in the dollar,” said Eric Kuby, chief investment officer at North Star Investment Management.

Moreover, on the trade front, “every day that there are no deals struck to provide any relief, it creates continued anxiety” that Trump’s policies in their current form could be destructive for the economy, Kuby said.