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5d ago

Markets Stabilize as Trump Pauses Fed Criticism and Treasury Hints at Trade De-escalation

U.S. markets recover some losses following volatile trading spurred by Trump's tariff policies and attacks on Fed Chair Powell, while the IMF warns of slowing growth and recession risks.

Archivo - Pantallas de Bolsas y Mercados Españoles (BME)
Archivo - Señal de la Bolsa de Madrid frente a la fachada del edificio, en Madrid (España)
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Overview

  • U.S. stock indices rebounded on April 22 after sharp declines earlier caused by President Trump's criticism of Fed Chair Jerome Powell and escalating trade tensions.
  • Treasury Secretary Scott Bessent expressed optimism about a potential de-escalation of the trade conflict with China, though formal negotiations have not yet begun.
  • The dollar remains near its lowest level since 2021, while alternative assets like bitcoin and gold have surged amid market uncertainty.
  • The IMF downgraded its U.S. growth forecast for 2025 to 1.8% and raised recession risk to 40%, citing fallout from the ongoing trade war.
  • Despite temporary market stabilization, concerns persist over Trump's public attacks on Powell and speculation about his potential removal as Fed Chair.