Trump’s Powell threats sink stocks in rocky start to trading week

• American stock indicators decreased on MondayA harsh start for the week amid increasing concerns about the definitions and the future of the US Federal Reserve Independence. Meanwhile, the dollar continued to fall and the revenues of the treasury bonds rose while the gold rose.

The “Sell Americana” trade was in effect on Monday, as all the main stock indicators in the United States closed a decrease amid concerns about the escalation of president Donald Trump and his unprecedented threats to the overthrow of the Federal Reserve Speaker Jerome Powell.

Dow Jones Industrial MEVERGAL closed by 2.48 % less, while S&P 500 decreased around 2.36 % and Nasdaq Componet Deleed 2.55 %. At the same time, the dollar fell to the lowest level of its duration and gold rose to record high levels. A great concern among investors: future independence of federal reserve studies, where Trump was again placed in Powell in a post on his social media platform.

Powell summoning “Al -Sayed after it was too late, the main loser” in his post, called on the president to decrease interest rates, claiming falsely “There is almost no inflation.” The federal reserve, which usually works independently of the government regardless of the party in power, was reluctant to decrease this year due to concerns about the high inflation associated with the president’s tariff policies.

Although he did not call on Powell on Monday, investors and critics who touched both are still concerned that he might try to do so. On Friday, Kevin Haysit, director of the National Economic Council of the White House, said that Trump was “studying” whether he could remove Powell before the end of his term next year. On Monday, Krishna, Vice President of Evercore ISI, at “Squawk Box”, said on Monday, will likely to remove Powell to more stocks and bonds.

Joe said: “If you already try to remove the Federal Board of Directors, I think you will see a severe reaction in the higher returns markets, and less than the dollars and the shares that are sold,” said. “I cannot believe that this is what the administration is trying to achieve.”

The global “cancellation of the fading” seemed to be clear as the US dollar slipped on Monday. In a more typical environment, the markets use dollars as a safe haven from other economic noise, and will enhance the dollar. But other countries are losing confidence in the United States due to the wrong measures of the Trump administration and actively selling American assets. The dollar fell more than 9 % on an annual basis compared to a basket of other currencies.

The US Treasury revenues increased, as the observation rate increased for 10 years by more than 4.4 %. Meanwhile, Bitcoin and other encryption assets rose to start a week, as it was a safe haven amid Trump’s attacks on the federal reserve. Gold has also increased to many new levels this year as investors run for safety.

Commercial deals are also not worried for investors

Economists and investors are concerned that the proposed definitions of the president can cause stagnation if the administration progresses with them. Although Trump hopes to make deals with dozens of different countries – including Japan and 74 other countries – none of them have been fulfilled.

China, on which Trump imposed a 145 % import tariff, other countries warned Monday against concluding trade deals with the United States “at the expense of China’s interest.” The Ministry of Commerce said that the country “will take counter -measures in a firm and mutual manner.”

There is a 90 % chance of stagnation in the United States in 2025, according to the Torsten Släk from Apollo Global Management.

He wrote at the end of this week: “The application of the very high customs tariffs overnight hurts many companies, especially small companies, because the customs tariff must be paid by the company when imported goods reach the United States.” “Expect the ships to sit abroad, cancel orders, and generations’ fragmentation traders well to apply for bankruptcy.”

The main profits of this week, including TESLA, will closely be seen in Wall Street. Several companies have directed the direction forward, including Delta Airlines and Walgrens.

This story was originally shown on Fortune.com

2025-04-21 20:07:00