US stocks and the dollar experienced significant declines following intensified criticism from President Donald Trump towards Federal Reserve Chair Jerome Powell. Trump labeled Powell as “a major loser” for not lowering interest rates and urged preemptive rate cuts to boost the economy. In a social media post, Trump criticized Powell for being too slow to respond to economic changes. Trump’s own tariff policies have contributed to a stock market sell-off and fears of an economic recession. The S&P 500 fell by approximately 2.4%, while the Dow Jones Industrial Average dropped 2.5%. The Nasdaq fell more than 2.5%. Despite being considered safe assets, the dollar and US government bonds have not escaped recent market volatility. The dollar index fell to its lowest level since 2022. Interest rates on US government debt also rose as investors sought higher returns for holding Treasuries. Trump’s criticism of Powell dates back to his first term, during which he reportedly considered firing him. Powell has warned that Trump’s import taxes could drive up prices and slow the economy. Trump recently called for Powell’s termination, though such a move would be controversial and legally questionable given the Fed’s tradition of independence.
— new from BBC