The US actions closed significantly more under Monday when President Donald Trump intensified his criticisms of the Federal Reserve, urging the Central Bank to reduce interest rates immediately and question the policy approach of the president of the FED, Jerome Powell.
The comments occurred days after Trump said he was anxious for Powell’s “termination” despite an old norm of political independence in the Central Bank.
The industrial average Dow Jones closed 971 points, or 2.4%, while the S& P 500 fell 2.3%. Technological heavy nasdaq decreased 2.5%.
The price of gold rose to a record of more than $ 3,400 per ounce on Monday, extending the profits achieved in recent weeks as investors have sought perceived investments such as safe paradises.
However, a renewed sale hit the US bond market, however, caused concern among some investors about continuous volatility in an investment that is generally considered one of the most reliable. The 10 -year treasure bond performance remains below a maximum reached after the Trump’s “Liberation Day” fee announcement, but is well above its level at the beginning of April.
Last week, Powell expressed an alarm on Trump’s tariff policy, saying that inflation and slowing economic growth would probably increase. Powell indicated that the Fed can address interest rates with restriction as policy formulators observe the economic effects of Trump tariffs.
In a publication on social networks on Monday, Trump called Powell “Mr. Too Too late” in reference to a political approach that Trump sees too cautious.
Trump warned about the possibility of an economic slowdown “unless Mr. Too Late, a large loser, reduces interest rates, now.”
In addition, Trump said without evidence that the trim of interest rates promulgated by the Fed last year had emerged from “helping Sleepy Joe Biden, later Kamala, be chosen.”
Since Powell became president of the Fed in 2018, he repeatedly stated the political independence of Fed. Fed is an independent government agency established by Congress.
The president of the Federal Reserve, Jerome Powell, speaks at the Chicago Economic Club, on April 16, 2025.
Kamil Krzaczynski/AFP through Getty Images
In November, days after Trump’s electoral victory, Powell gave a challenging tone when asked if he would resign his position if Trump asked him.
“No,” said Powell, pauses to let the responses of a word register with journalists gathered at a press conference at the Fed headquarters, move away from the White House.
When asked if Trump could shoot or degrade it, Powell replied: “The law is not allowed.”
Powell last week raised the possibility of what economists call “stagflation”, which is when inflation increases and the economy slows down.
If the Fed increases interest rates as a means to protect against inflation induced by the rate in that scenario, run the risk of querying loans and decelerating the economy, experts previously said to ABC News.
On the other hand, experts said, if the Fed reduces rates to stimulate the economy in the face of a potential deceleration, threatens to increase spending and worsen inflation.
