The U.S. dollar is falling as President Donald Trump's economic agenda—at the executive and legislative level—takes full shape. Economists warn that a weakened dollar brings significant problems, including the jeopardization of its status as the world's reserve currency.

“The dollar is depreciating because global investors are less confident in the United States providing stable policies geared toward macroeconomic growth and a strong financial system,” Ryan Monarch, associate professor of economics, tells Newsweek. “Recent policies such as extremely high tariffs, increased government debt, and worries about inflation have all contributed to the falling dollar.”

In another Newsweek article, “Why Isn't the Fed Cutting Interest Rates? What To Know,” Monarch says, the impacts of tariffs on inflation data “have been more muted than expected so far,” but that upcoming releases ahead of the September meeting will indicate whether that was the case in June and July.