New York, New York – Stock markets in the United States took a hit once again as President Donald Trump escalated his criticism of Federal Reserve chair Jerome Powell, labeling him “a major loser” for not cutting interest rates. The ongoing clash between the president and Powell has heightened concerns of economic instability, with Trump urging for preemptive rate cuts to boost the economy.
Trump’s public call for interest rate cuts comes amid his administration’s tariff policies, which have contributed to the recent market turbulence. The S&P 500, Dow Jones Industrial Average, and Nasdaq all saw significant drops on Monday, reflecting the growing unease among investors. The dollar index also fell to its lowest level since 2022, while interest rates on US government debt rose as investors sought higher returns amidst the market volatility.
As the stock markets continue to fluctuate, the price of gold has surged to a record high as investors seek out safer investment options during times of economic uncertainty. Gold, traditionally viewed as a “safe-haven” asset, crossed the $3,400 per ounce mark for the first time on Monday, further highlighting the apprehensions surrounding the current economic landscape.
Trump’s criticism of Powell is not new, as the president has previously expressed dissatisfaction with the Fed chair’s approach to monetary policy. Powell, on the other hand, has warned about the impact of Trump’s trade policies on the economy, adding another layer of tension to their relationship. The latest public call for Powell’s termination by Trump has raised debates about the independence of the Federal Reserve and the legality of such a move.
Despite the challenges and uncertainties facing the US economy, officials are evaluating the possibility of removing Powell from his position – a move that could have far-reaching consequences. The dynamics between the White House and the Federal Reserve have created a sense of unpredictability in the financial markets, with investors closely monitoring developments for potential shifts in economic policies and regulations.