Stocks Sink as Trump Targets Powell, Dollar Slides

Trump’s Fed Attacks Shake Wall Street; Dollar Hits 3-Year Low
 Global investors rush to gold and Swiss franc as Trump stokes Fed fears.

On Monday, U.S. markets took a nosedive, with major stock indexes deep in the red and the dollar tumbling to its lowest point in three years. The trigger? U.S. President Donald Trump ramped up his attacks on Federal Reserve Chair Jerome Powell, sparking fresh concerns about the central bank's independence and the broader state of U.S. monetary policy.

While markets were closed Friday due to the Easter holiday, Trump’s critical comments about Powell didn’t go unnoticed. In a particularly intense round of criticism, Trump raised questions about whether Powell should even remain at the helm of the Federal Reserve, prompting top White House adviser Kevin Hassett to confirm they would “study the matter.”

This renewed threat to Powell’s position has sent shockwaves through the financial world, where stability and central bank independence are core tenets for investor confidence.

“He’s a steady hand,” said Robert Pavlik of Dakota Wealth. “Amid global chaos, Powell offers stability something markets desperately need.”

 Markets Crumble Across the Board

The fallout was immediate.

• Dow Jones Industrial Average fell 971.82 points (-2.48%) to 38,170.41 
• S&P 500 Index dropped 124.50 points (-2.36%) to 5,158.20 
• Nasdaq Composite shed 415.55 points (-2.55%) to close at 15,870.90

The S&P 500 is now 16% below its February 19 peak, inching closer to bear market territory defined as a 20% drop from recent highs. Learn more about bear markets here.

Meanwhile, MSCI’s global stock index slipped 1.3%, signaling broader market unease.

  Dollar Falls, Safe Havens Surge

As the dollar index plunged to a three-year low, traders rushed to safer assets:

• Gold soared to a fresh record high, benefiting from inflation and risk fears. 
• Swiss franc, another traditional safe haven, gained strongly against major currencies. 

This flight to safety underscores just how rattled global investors are, especially with U.S. interest rate policy now seen as unpredictable due to political pressure.

 Tariffs and Trade Tensions Add Fuel

Beyond the Fed drama, Trump’s aggressive tariff policies continue to create market turbulence.

China has responded sharply, warning other countries not to sign any trade deals with the U.S. that come at Beijing’s expense. This deepens the U.S.-China trade war, a key driver of recent market volatility.

Investors are worried that tariffs especially the 145% levy on some Chinese imports will fuel inflation while hurting U.S. growth. The result is a double whammy for the Fed, which faces pressure to cut rates even as inflation climbs.

 In-Depth Analysis: Why Powell’s Role Matters

Jerome Powell isn’t just any central banker. In times of uncertainty, the Fed Chair acts as a stabilizer guiding expectations and adjusting interest rates to keep inflation and unemployment in check.

If the Fed’s independence is seen as compromised, markets lose faith. Investors begin questioning every policy move: Is it data-driven, or politically motivated?

That’s exactly what’s happening now. Trump’s repeated criticism paired with the suggestion of replacing Powell adds to a broader narrative of institutional instability, something that global investors detest.

“The Fed needs to be free from political pressure,” said a strategist at Goldman Sachs. “Otherwise, you risk undermining the entire financial system’s credibility.”

 Global Reaction: Easter Monday Illiquidity Amplifies Moves

Most European markets were closed for Easter Monday, leading to thinner-than-usual trading volumes. That low liquidity can magnify price swings, explaining why Monday’s moves were so dramatic.

But even when global markets reopen, analysts expect the aftershocks to continue unless Trump’s tone softens or the Fed takes decisive action to reaffirm its independence.

 Final Thoughts

Trump’s sharp criticism of Jerome Powell is more than just a political jab it’s shaking the very foundation of investor trust in the U.S. financial system. With stocks falling, the dollar sliding, and safe havens rising, this is a wake-up call for global markets.

Expect more turbulence ahead as the trade war with China deepens and the Fed faces mounting pressure from all sides. Investors should brace for volatility and keep an eye on central bank signals for any sign of reassurance.

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