U.S. stocks and the dollar fell sharply after President Donald Trump renewed attacks on Federal Reserve Chair Jerome Powell, calling him a “major loser” for not lowering interest rates. Trump urged a pre-emptive rate cut to support the economy, blaming Powell for being too slow in responding to economic changes.
The market reacted negatively, with the S&P 500, Dow Jones, and Nasdaq all dropping over 2%. The dollar weakened to its lowest level since 2022, while gold hit a record high as investors sought safer assets.
Trump’s ongoing feud with Powell, whom he appointed, has added to market instability. He has publicly pushed for Powell’s removal, though doing so could be legally questionable due to the Fed’s independent status.
