Tue, 22 Apr 2025

Tue, 22 Apr 2025 US stocks and dollar plunge as Trump attacks Fed chair Powell

The president amps up attack against US central bank boss calling him "a major loser" for not lowering interest rates.

* US stocks plummeted by over 2% as President Donald Trump continued his public feud with Federal Reserve Chair Jerome Powell, calling him a "major loser" for not lowering interest rates.
* Trump's attacks on Powell have intensified in recent days, with the president accusing him of being slow to respond to economic developments and urging him to cut interest rates "pre-emptively".
* The stock market turmoil has been compounded by Trump's own plans for tariffs, which have driven a sell-off and raised fears of an economic recession.
* The S&P 500 index fell 2.4% on Monday, while the Dow Jones Industrial Average dropped 2.5% and the Nasdaq fell over 2.5%.
* The dollar index plummeted to its lowest level since 2022, and interest rates on US government debt rose as investors demanded higher returns for holding Treasuries.
* Gold prices hit a new record high as investors sought out "safe-haven" assets amid economic uncertainty.
* Trump's criticism of Powell dates back to his first term in office, when he reportedly discussed firing him, and the latest attack follows Powell's warnings that Trump's import taxes would slow the economy.
* The feud has sparked concerns about the independence of the Federal Reserve, with Powell stating last year that he did not believe Trump had the legal authority to remove him.
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