US markets plunged after Donald Trump criticized Powell, demanding interest rate cuts and calling him “a major loser” on social media.
President Donald Trump has intensified his public feud with US Federal Reserve Chair Jerome Powell, blaming him for not lowering interest rates fast enough to prevent a possible economic slowdown.
In a heated post on social media, Trump referred to Powell as “Mr. Too Late” and “a major loser,” urging him to cut rates “pre-emptively” to support the economy.
“There can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW,” Trump wrote, adding fresh fuel to market concerns already fanned by trade tensions and recession fears.
The fallout was immediate. Wall Street saw sharp declines on Monday, with the S&P 500 falling by 2.4%—its steepest drop in weeks—bringing its total loss this year to 12%.
The Dow Jones Industrial Average also shed 2.4%, down 10% year-to-date, while the tech-heavy Nasdaq fell over 2.5% and is now down 18% since January.
Global markets mirrored the unease. In Asia, Japan’s Nikkei 225 closed slightly down by 0.1%, while the ASX 200 in Sydney slipped 0.3%. Hong Kong’s Hang Seng managed a modest 0.3% gain.
READ ALSO: Trump may sack Fed Reserve Chair, Powell
In Europe, early trading saw the UK’s FTSE 100 dip 0.05%, Germany’s DAX lose 0.5%, and France’s CAC down by 0.6%.
The US dollar, usually seen as a safe haven in times of crisis, dropped to its lowest level since 2022. Investors also began demanding higher returns on US government debt, pushing Treasury yields higher.
In contrast, gold prices hit a historic high, soaring past $3,500 per ounce, as investors rushed to safer assets amid economic uncertainty.
Trump’s clash with Powell isn’t new. He appointed him during his first term but has frequently criticized his decisions.
His latest demand for Powell’s removal has sparked debate over the independence of the Federal Reserve.
As global financial leaders meet in Washington for IMF and World Bank talks, many fear that instability in the US could have far-reaching effects, especially as economic forecasts point to tougher times ahead.
BBC News
