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**Summary:**

Trade war anxieties, exacerbated by President Trump’s tariffs, are negatively impacting the U.S. economy. The OECD has lowered its growth forecast due to these concerns. This, combined with the Republican spending bill leading to large deficits, is putting downward pressure on the U.S. dollar. The dollar traded near a three-year low and Wall Street analysts, including those at Morgan Stanley, JPMorgan Chase, and Goldman Sachs, predict it could fall further (potentially around 9% in the next year). Investors are hedging against U.S. assets, particularly Treasury notes and bonds, which could further weaken the dollar.

**News Article:**

**Trade War Fears Batter Dollar; Wall Street Predicts Further Decline**

**New York, NY** – Growing concerns over the ongoing trade war and its impact on the U.S. economy are weighing heavily on the dollar, pushing it towards a potential freefall, according to several Wall Street analysts.

The Organization for Economic Cooperation and Development (OECD) recently slashed its growth forecast for the U.S., citing the negative effects of President Trump’s tariffs. The OECD projects that tariffs will negatively affect most countries this year and the next, but the negative effect on the U.S. is spooking economists and Wall Street.

“The combination of lower growth projections with the existing Republican spending bill, which is driving up deficits, is creating significant pressure on the dollar,” explains Bernhard Warner, in a recent report. The dollar already traded near a three-year low on Monday.

Major financial institutions are sounding the alarm. Morgan Stanley analysts predict the greenback could tumble another 9% over the next 12 months. JPMorgan Chase and Goldman Sachs have also issued bearish assessments in recent days.

Investors are showing signs of unease, increasingly hedging against U.S. assets, particularly Treasury notes and bonds. According to Matthew Hornbach, global head of macro strategy at Morgan Stanley, these hedging strategies could further weaken the dollar’s position. While investors may not be ready to abandon the world’s reserve currency, the growing anxiety surrounding trade policies is clearly taking its toll.

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