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6d ago

Trump’s Threats Against Fed Chair Powell Shake Markets

Escalating attacks on Jerome Powell and calls for rate cuts have spurred stock sell-offs, dollar declines, and record rallies in safe-haven assets.

Stock market plunges into crisis amid Trump vs Powell battle
The bull and bear sculptures outside the stock market in Frankfurt, Germany, on April 16.
U.S. Federal Reserve Chair Jerome Powell speaks during a press conference, in Washington, U.S., January 29, 2025.
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Overview

  • President Trump has intensified his criticism of Federal Reserve Chair Jerome Powell, calling for immediate rate cuts and suggesting Powell's removal before his term ends in 2026.
  • U.S. stock markets fell sharply, with the Dow dropping over 1,200 points and the S&P 500 and Nasdaq each losing more than 3% on Monday morning.
  • The U.S. dollar index hit a three-year low, reflecting investor concerns about the Federal Reserve's independence and broader economic uncertainty.
  • Safe-haven assets like gold and Bitcoin surged to record highs, with gold exceeding $3,400 per ounce and Bitcoin nearing $88,000.
  • Experts and lawmakers, including Fed officials and Sen. Elizabeth Warren, warned that undermining the central bank's independence could destabilize markets and erode confidence in U.S. economic policy.