US stocks and dollar sink as Donald Trump renews attacks on Fed chair Jay Powell

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The shares of Wall Street and the dollar have declined amid uncertainty in escalating the American economy, as President Donald Trump renewed his attacks on Federal Reserve Chairman Jay Powell.

In a post on the social truth platform on Monday morning, shortly after the opening of the markets, Trump said that Powell, who was called “Al -Master, is too late”, should reduce interest rates “now” to stimulate the economy.

American stocks opened a decrease, but the sale is intensified after Trump’s social media publications aimed at the central bank. The S&P 500 ended the session less than 2.4 percent, with more than nine out of 10 of its stockpiles of negative lands. The nasdaq technology compound decreased by 2.6 percent.

The movements of the market came after Kevin Haysit, director of the National Economic Council, said on Friday that Trump would “continue” studying the issue of Powell’s rejection after the president claimed the previous day that he had the right to shoot at the Federal Reserve Chairman.

The President has repeatedly criticized Powell for not lowering interest rates quickly, while the Federal Reserve Chairman said he would never be affected by political pressure.

“If you think it is unacceptable that President Trump would feel frustrated from the history of the federal reserve policy, I think you … got some explanation to do it,” Haysit told reporters in Washington on Friday.

The dollar fell by 1.5 percent to its lowest level for three years against a basket of its big commercial partners on Monday, while the euro achieved 1.1 percent to reach $ 1.154, and the yen was 0.9 percent more stable at 140.84 yen.

American sovereign debt has been sold. The return on the US Treasury increased for 10 years by 0.08 percentage points at 4.41 percent after the latest publication of Trump’s social media. The bond returns are inversely transmitted to prices.

“The idea that Powell can be on his way out will put a real fear in the market. It is a rational voice, and a well -known amount,” said Stephen Gray, chief investment employee at Gray Value Management.

Gray said that the Monday’s journey of the assets offered by the dollar also reflected broader fears about the increasingly US policy industry. “Trump is unreliable, it cannot be trusted. What many foreigners deduce from the election of Trump twice is that it is not possible to trust America itself or rely on it to the extent that it was for several decades.”

Yujiro Goto, Nomura Securities, said that the mix of bond sales and low currency value at the same time was rare in the main backup market like the United States.

Goto attributed the height to the yen to concerns about “recession” and “increasing confidence in the credibility of American assets.”

CICC analysts, the Chinese Investment Bank, said in a Sunday report that the uncertainty in local American policy was leading the dollar and the Secretary to “act more like the origins of risk.”

They added that Trump’s recent statements about Powell “increased the market concerns about the independence of the Federal Reserve.”

“Any decrease in the independence of the Federal Reserve will add the risk of the upward trend to inflation expectations that are already undergoing escalating pressure from customs tariffs and somewhat high inflation forecasts,” said Michael Verley, the chief American economist at JPMorgan, in the investor.

The central bank has so far kept the rates that were suspended this year after they were reduced three times in 2024. Its next meeting in May.

The Federal Reserve defines monetary policy independently of the other branches of the government. Any attempt to topple Powell, whose duration is scheduled to end in May 2026, or can cause monetary policy to pressure in the United States, according to investors and analysts.

Additional reports from Cheng Ling in Hong Kong