US stocks and the dollar fell again after President Donald Trump intensified his attacks on US Federal Reserve Chairman Jerome Powell, calling him "a big loser" for not cutting interest rates.
In a social media post, Trump called on the Federal Reserve chairman to cut interest rates "preemptively" to help boost the economy, saying Powell has consistently been too slow to respond to economic developments.
“There could be a slowdown in the economy if Mr. Too Late, a big loser, lowers interest rates NOW,” Trump wrote on Truth Social. Trump’s criticism of Powell’s handling of the U.S. economy comes after his tariff plans sparked a stock market sell-off and heightened fears of an economic recession, A2 writes.
On Wall Street, all three major indexes fell sharply on Easter Monday, as not only the fallout from the President's tariff policy but also confidence in the Fed's independence is now being undermined.
The Dow Jones Industrial Average fell nearly 2.5 percent after the close, the S&P 500 fell nearly 2.4 percent and the Nasdaq Composite dropped more than 2.5 percent. In particular, losses by the "Magnificent Seven," a group of high-growth technology giants, dragged the Nasdaq into further losses.
The dollar has also continued to fall and is now trading at $1.15 per euro. At the same time, gold hit a new record of $3,430 an ounce. Trump’s attacks on Powell also worried investors in Asia on Tuesday. “Investors expect that increased uncertainty about U.S. monetary policy will have a negative impact on financial markets and the economy as a whole,” said Hiroyuki Kikukawa, chief strategist at Nissan Securities Investment.
In addition, concerns about the effects of the trade war with China are growing. Carmaker Tesla was particularly hard hit by the price drop on Monday. Its shares fell 5.8 percent. Trump's criticism of Powell dates back to his first term in office, when he discussed firing him.
Since winning the election, he has urged Powell to lower borrowing costs. The latest criticism follows Powell's warnings that Trump's import tariffs are likely to raise prices and slow the economy. (A2 Televizion)
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