U.S. Markets Plunge Amid Trade Worries and Fed Criticism
U.S. stocks are tumbling due to ongoing trade concerns and criticism of the Federal Reserve. President Donald Trump’s trade war and attacks on the Fed are causing investors to lose confidence in the U.S. dollar and stocks. The DOW Jones dropped 976.23 points, or 2.49%,while the S&P 500 fell 2.63%. The tech-heavy Nasdaq index saw an even bigger decline, down 2.97%.
The U.S. dollar index hit its lowest point since 2022, dipping to 97.92.Trump’s increasing pressure on Fed Chair Jerome Powell is making some investors doubt the Fed’s independence. Bitcoin, however, reached a daily high of $88,460, indicating it might be seen as a safer option compared to the weakening dollar. gold prices also rose, up 2.95% to $3,413 per ounce.
On April 21, Trump posted on Truth Social, calling Powell a “major loser” and urging him to cut interest rates. Trump believes lower energy prices could offset any inflation from a rate cut. Tho, Powell remains skeptical about easing monetary policy. In a March speech, he noted the U.S.economy is doing well, citing strong employment figures.
since its creation, the Federal Reserve has operated independently of political pressures, like other central banks in developed countries. This independence is crucial for maintaining the strength of the domestic currency.
