GBP/USD edges up above 1.3350 as Trump's attack on Powell threatens Fed independence

GBP/USD is trading in positive territory around 1.3370 during early Asian trading on Tuesday. Concerns about a slowdown in the U.S. economy and worries about the independence of the Federal Reserve (Fed) dragged the U.S. dollar (USD) lower, creating a tailwind for major currency pairs.

U.S. President Donald Trump slammed Federal Reserve Chairman Jerome Powell for continuing to favor a "wait-and-see" mode of monetary policy until there is more clarity on how new tariffs will affect the economic outlook. Trump warned on Truth Social that the U.S. economy will slow unless Powell cuts interest rates immediately.

Meanwhile, the U.S. Dollar Index (DXY) is currently trading around 98.30, its lowest level since March 2022. Heightened uncertainty over Trump's tariffs and growing trade tensions between the United States and China have weakened the dollar on all fronts.

On the other hand, softer UK Consumer Price Index (CPI) inflation data for March and global uncertainties paved the way for the Bank of England (BoE) to cut interest rates at its May policy meeting. Financial markets currently price in an 86% chance of a rate cut by the Bank of England at its May meeting, according to LSEG. This in turn could put pressure on the British pound (GBP) relative to the U.S. dollar (USD).