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Wall Street stocks and the dollar collapsed amid the growing uncertainty over the US economy after President Donald Trump renewed his attacks on Federal Reserve Chairman Jay Powell.
US capital opened below on Monday and the sale intensified as Trump managed to aim for the central banker. S&P 500 was reduced 3.3 percent during the New York afternoon trading, while the composition of heavy technology Nasdaq fell 3.6 percent.
In a post on his social truth platform Monday morning shortly after the market was opened, Trump said Powell, whom he called “Mr. too late”, should lower interest rates “now” to stimulate the economy.
Market movements came after Kevin Hassett, director of the National Economic Council, said Friday that Trump would continue to study Powell’s rest after the president claimed the day before he had the right to light the Fed chair.
Trump has repeatedly criticized Powell for not lowering interest rates sufficiently, while the Fed leader has said he will never be affected by political pressure.
“If you think it’s unacceptable for President Trump to be disappointed with the Fed’s policy history, then I think you.
The dollar dropped up to 1.5 percent in a three-year low against a basket of its main trading partners on Monday, while the euro earned 1.2 percent to $ 1,152 and has strengthened 1.1 percent to $ 140.58 against the dollar.
Sovereign American debt remained weaker a day, but had cut some of his previous losses. The yield of the US 10-year treasure increased by 0.06 percentage points to 4.39 percent after Trump’s recent social media posting. Bond yields move in the opposite way to prices.
Thierry Wizman, a global foreign exchange strategist and interest in Macquarie, said the “flight from the dollar” on Monday was being fueled by increasing concerns about the FED’s independence, as well as the lack of Washington’s progress in trade agreements.
He cited the prospect of increasing the “deterioration” of the stock growth, adding that “willingness to restore the US consumer price inflation is deducting, namely flying to gold (and) reservation in long -term yields”.
Yujiro Goto, the Forex strategist in Nomura Securities, said the combination of bond sales and the depreciation of the currency at the same time was rare in a market of main reserves coins such as Sh.BA
Goto attributed Jen’s growth to concerns about us “stagflation” and “increasing distrust in the reliability of American assets”.
CICC analysts, the Chinese Investment Bank, said in a report Sunday that US domestic policy uncertainty was making the dollar and treasures “behaved more like risk assets”.
They added that Trump’s recent remarks about Powell “further increased market concerns about the independence of the Federal Reserve.”
The Central Bank has so far held the pending tariffs this year after lowering them three times in 2024. Her next meeting is in May.
The Fed sets the monetary policy independently of other branches of the government. Attempt any attempt to remove Powell, whose term is scheduled to be completed in May 2026, or the pressure monetary policy may cause further market unrest in the US, according to investors and analysts.
Additional reporting from Cheng Leng to Hong Kong
