Trump’s attack on Fed chair Powell has triggered a significant stock market crash, with major indices tumbling as investors react to such unprecedented political pressure on the central bank. The president’s criticism of Federal Reserve Chairman Jerome Powell has heightened economic uncertainty and also fueled market volatility at the time of writing.

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Impact of Trump’s Attack on Powell: Stock Market Volatility and Risks

U.S. stock markets fell sharply after President Trump intensified his attacks against Federal Reserve Chair Powell. The Dow ended down 2.5%, the Nasdaq Composite dropped over 2.5%, and also the S&P 500 fell 2.4%, while the dollar weakened to multiyear lows against major currencies.

Trump stated:

“There can be a slowing of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW.”

Central Bank Independence Questioned

Trump’s attack on Fed chair Powell has extended to suggestions he might attempt to remove Powell before his term expires in 2026. The unprecedented nature of these attacks has, in many ways, raised concerns about Fed independence and increased stock market volatility in recent days.

Powell emphasized:

“Our independence is a matter of law. We serve very long terms, seemingly endless terms, so we’re protected by the law.”

The economic uncertainty stemming from Trump’s attack on Fed chair Powell is compounded by concerns about his proposed tariffs. Powell has warned about these consequences, which could worsen market risks.

Powell told reporters:

“Tariffs are highly likely to generate at least a temporary rise in inflation. The inflation effects could also be more persistent.”

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Financial experts have cautioned that firing the Fed chair would trigger significant market turmoil and increase market risks. The market’s negative reaction to Trump’s attack on Fed chair Powell demonstrates investors’ concerns about political interference in monetary policy.

Krishna Guha, vice-chair of Evercore ISI, stated:

“I can’t believe that’s what the administration is trying to achieve.”

Meanwhile, White House economic adviser Kevin Hassett confirmed:

“We will continue to study” if they can legally fire Powell.

Economic Policy at Critical Juncture

The Fed faces difficult decisions at its upcoming May 6-7 meeting amid this heightened economic uncertainty. The central bank has successfully brought inflation down from 9% to 2.4% while maintaining unemployment around 4%, but these achievements could be undermined by the current political pressure.

Also Read: Top 3 Cryptocurrencies That Could Make A Recovery This Week

Almost all market gains following Trump’s 90-day tariff pause announcement have been erased amid these new criticisms, highlighting how closely market volatility is tied to the perceived independence of the U.S. central bank amid Trump’s attack on Fed chair Powell in recent weeks.

Trump’s attack on Fed chair Powell has triggered a significant stock market crash, with major indices tumbling as investors react to such unprecedented political pressure on the central bank. The president’s criticism of Federal Reserve Chairman Jerome Powell has heightened economic uncertainty and also fueled market volatility at the time of writing.

Also Read: The 1 Cent Dream: 3 Things That Can Push Shiba Inu to $0.01

Impact of Trump’s Attack on Powell: Stock Market Volatility and Risks

U.S. stock markets fell sharply after President Trump intensified his attacks against Federal Reserve Chair Powell. The Dow ended down 2.5%, the Nasdaq Composite dropped over 2.5%, and also the S&P 500 fell 2.4%, while the dollar weakened to multiyear lows against major currencies.

Trump stated:

“There can be a slowing of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW.”

Central Bank Independence Questioned

Trump’s attack on Fed chair Powell has extended to suggestions he might attempt to remove Powell before his term expires in 2026. The unprecedented nature of these attacks has, in many ways, raised concerns about Fed independence and increased stock market volatility in recent days.

Powell emphasized:

“Our independence is a matter of law. We serve very long terms, seemingly endless terms, so we’re protected by the law.”

The economic uncertainty stemming from Trump’s attack on Fed chair Powell is compounded by concerns about his proposed tariffs. Powell has warned about these consequences, which could worsen market risks.

Powell told reporters:

“Tariffs are highly likely to generate at least a temporary rise in inflation. The inflation effects could also be more persistent.”

Also Read: This Asset Outperformed Bitcoin & the US Dollar This Year

Financial experts have cautioned that firing the Fed chair would trigger significant market turmoil and increase market risks. The market’s negative reaction to Trump’s attack on Fed chair Powell demonstrates investors’ concerns about political interference in monetary policy.

Krishna Guha, vice-chair of Evercore ISI, stated:

“I can’t believe that’s what the administration is trying to achieve.”

Meanwhile, White House economic adviser Kevin Hassett confirmed:

“We will continue to study” if they can legally fire Powell.

Economic Policy at Critical Juncture

The Fed faces difficult decisions at its upcoming May 6-7 meeting amid this heightened economic uncertainty. The central bank has successfully brought inflation down from 9% to 2.4% while maintaining unemployment around 4%, but these achievements could be undermined by the current political pressure.

Also Read: Top 3 Cryptocurrencies That Could Make A Recovery This Week

Almost all market gains following Trump’s 90-day tariff pause announcement have been erased amid these new criticisms, highlighting how closely market volatility is tied to the perceived independence of the U.S. central bank amid Trump’s attack on Fed chair Powell in recent weeks.