ECB’s Nagel Says Trump’s Fed Attacks Caused Flight to Safety

President Donald Trump’s repeated attacks on the Federal Reserve are backfiring as they cause distrust in US institutions and a flight from US assets and the dollar, European Central Bank Governing Council member Joachim Nagel said.

Speaking at an event to mark the 90th birthday of former ECB and Bundesbank Chief Economist Otmar Issing, Nagel cited recent Bundesbank research examining the situation since early 2025. It showed that when Trump put pressure on the Fed this didn’t lead to higher inflation expectations, but to lower Treasury yields, a fall in equity prices, a surge in gold and a weaker dollar.