US stocks and dollar slide after Trump attacks Fed chair Powell

US stocks and the dollar plunged once more as President Donald Trump intensified his attacks on US central financial institution boss calling him “a significant loser” for not reducing rates of interest.

In a social media put up, Trump known as on Federal Reserve chair Jerome Powell to chop rates of interest “pre-emptively” to assist enhance the economic system, saying Powell had been constantly too gradual to answer financial developments.

“There could be a SLOWING of the economic system until Mr. Too Late, a significant loser, lowers rates of interest, NOW,” he wrote.

Trump’s criticism of Powell’s dealing with of the US economic system comes as his personal plans for tariffs have pushed a inventory market sell-off and raised fears of financial recession.

The president’s intensifying conflict with Powell, whom he named to guide the Fed throughout his first time period, has added to the market turmoil.

The S&P 500, which tracks 500 of the most important US corporations, fell roughly 2.4% on Monday. It has misplaced roughly 12% of its worth because the begin of the yr.

The Dow Jones Industrial Common dropped 2.5% and has dropped about 10% up to now this yr, whereas the Nasdaq fell greater than 2.5% and is down roughly 18% since January.

Although the dollar and US authorities bonds are usually thought of protected belongings in occasions of market turmoil, they haven’t escaped the current turbulence.

The dollar index – which measures the energy of the dollar in opposition to a set of currencies together with the Euro – on Monday fell to its lowest degree since 2022.

Rates of interest on US authorities debt additionally rose, as traders demanded greater returns for holding Treasuries.

Trump’s criticism of Powell dates again to his first time period in workplace, when he additionally reportedly mentioned firing him. Since successful the election, he has urged Powell to decrease borrowing prices.

The newest criticism follows Powell’s warnings that Trump’s import taxes have been prone to drive up costs and gradual the economic system.

Trump final week known as publicly for Powell to be fired, writing on social media on Thursday: “Powell’s termination can’t come quick sufficient,”.

Such a transfer can be controversial – and legally questionable – given a convention of independence on the financial institution.

Powell final yr advised reporters he didn’t consider the president had the authorized authority to take away him.

However one among Trump’s prime financial advisers confirmed that officers have been finding out the choice on Friday, when the inventory market within the US was closed for buying and selling.