US actions are beating, since continuous fears of commercial relations and attacks against Fed are weighing markets.
The inceptions in progress on the commercial war of President Donald Trump and the attacks against the Federal Reserve are seen the investors abandon the US dollar and the shares. The Dow Jones fell 976.23 points or 2.49% at the end of the afternoon, while the S&P 500 fell 2.63% in the same period. The Nasdaq -centered technology index fell even more, dropped 2.97%.
At the same time, the US dollar index It was as low as 97.92, falling to its lowest level since 2022. Trump’s growing attacks against the president of the Fed, Jerome Powell, are taking some investors to question if the Fed can continue to be independent.
At the same time, Bitcoin (BTC) It reached a daily maximum of $ 88,460, suggesting that some merchants can see it as a safe refuge compared to a weakening dollar. Gold has also seen a strong yield, 2.95% at $ 3,413 per ounce.
Trump press the fed chair to reduce rates
On a Monday April 21, publication about Truth Social, Trump called Powell to “Greater Loser” and “Mr. Too Late”, pressing it to reduce interest rates to help the stock market in difficulties. Trump said that the lowest energy prices, which are due in part to the fears of recession, would help cushion any inflation that may result from a rate cut.
Unlike Trump, Powell has been repeatedly Skepticism is shown On the possible effects of the ease of monetary policy. In a speech in March, the president of the Fed explained that the US economy is fine, despite wild fluctuations in the stock market. In particular, Powell cited strong employment figures that suggest that Fed has time to react.
Since its inception, the Federal Reserve has established a monetary policy regardless of the directives of Washington, as well as the central banks in all developed countries. This independence It is considered vital to guarantee the force of the national currency, since it helps against political pressures in favor of devaluation.