Tue Apr 22 02:31:23 UTC 2025: ## Trump’s Attacks on Fed Chair Send US Stocks and Dollar Plunging
**New York, NY** – President Trump’s continued attacks on Federal Reserve Chairman Jerome Powell sent shockwaves through global markets on Monday, causing a sharp decline in US stocks and the dollar. The S&P 500 plummeted 2.36 percent, marking one of the year’s steepest single-day drops, while the Nasdaq Composite tumbled 2.55 percent. The dollar fell to a three-year low against major currencies, and US government bond yields rose.
The sell-off reflects growing investor concern over the potential erosion of the Federal Reserve’s independence. Trump has repeatedly criticized Powell for not lowering interest rates faster and has even threatened to remove him from his post. This has fueled fears that political interference could lead to inflationary policies detrimental to long-term economic health.
Experts warn that undermining the Fed’s independence could have severe consequences. Austan Goolsbee, president and CEO of the Federal Reserve Bank of Chicago, stated that such interference would likely result in higher inflation, worse economic growth, and increased unemployment. Joseph E. Gagnon, a senior fellow at the Peterson Institute for International Economics, echoed these concerns, highlighting that markets are reacting to the increased likelihood of political interference in monetary policy.
Asian markets opened lower Tuesday, reflecting the negative sentiment emanating from the US. While Powell maintains he cannot be legally removed except for malfeasance, the Trump administration’s pursuit of a Supreme Court case challenging the independence of other federal agencies has further fueled anxieties. The administration’s actions are seen as challenging a long-standing principle of the Fed’s independence from political pressure. The ongoing situation underscores significant risks to the US economy and global financial stability.
First Piper 