Trump Escalates Feud with Fed Chair Powell: Markets Shake
On April 21, 2025, tensions between former U.S. President Donald Trump and Federal Reserve Chair Jerome Powell made headlines again. The dispute has sparked serious volatility in financial markets across the globe.
Background of the Conflict
Earlier in April, Trump announced new tariffs of 10% on imports from several countries, leading to market losses exceeding $10 trillion worldwide. The move unsettled investors and raised fears of a looming economic downturn.
Trump’s Latest Criticism
Trump renewed his public attacks on Powell, calling him “a major loser” and “Mr. Late,” demanding immediate rate cuts to prevent a potential slowdown. He even hinted at removing Powell, despite legal hurdles in doing so.
Market Reactions
Following Trump’s remarks, the S&P 500 index fell by 2%, and the U.S. dollar hit a three-year low. Meanwhile, gold and oil prices surged as investors sought safer assets amid increasing uncertainty.
Powell Defends Fed’s Independence
Despite mounting pressure, Powell reaffirmed the independence of the Federal Reserve and made it clear he wouldn’t resign. He received support from key Republicans, including Senator John Kennedy, who described him as “a tiger under pressure.”
What’s Next?
This escalating dispute raises significant concerns about political interference in monetary policy. The ongoing clash could weaken investor confidence and destabilize long-term U.S. economic performance.