Prahaar Samachar/22 April 2025 । As President Donald Trump stepped up his criticism of the US central bank chief, labeling him “a major loser” for failing to cut interest rates, US markets and the dollar fell once more.
Trump claimed in a social media post that Jerome Powell, the head of the Federal Reserve, had been too slow to react to economic changes and urged Powell to lower interest rates “pre-emptively” to assist stimulate the economy.
“There can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW,” he stated.
Trump has criticized Powell’s management of the US economy at a time when his own tariff plans have caused a sell-off in the stock market and sparked concerns about a potential recession.
The market turbulence has been exacerbated by the president’s growing conflict with Powell, whom he appointed to head the Fed during his first term. Monday saw a 2.4% decline in the S&P 500, which measures 500 of the largest US corporations. Since the beginning of the year, it has lost almost 12% of its worth. While the Nasdaq sank more than 2.5% and has lost over 18% since January, the Dow Jones Industrial Average slid 2.4% and has lost approximately 10% so far this year. Trading on the majority of the Asia-Pacific region’s main stock indices, however, was muted on Tuesday. The Sydney-based ASX 200 finished around 0.3% down, while Japan’s Nikkei 225 closed about 0.1% lower. The Hang Seng in Hong Kong ended the day up around 0.3%.
Germany’s Dax was down around 0.5%, France’s CAC was down 0.6%, and the UK’s FTSE 100 stock market was down about 0.05% in early European trade.
Despite their reputation as safe investments during market instability, the US dollar and US government bonds have not been immune to the recent upheaval.
Monday saw the dollar index, which gauges the value of the dollar relative to a group of currencies, including the euro, drop to its lowest point since 2022.
As investors sought more profits for keeping Treasuries, interest rates on US government paper likewise continued to increase on Tuesday.
As investors go for so-called “safe haven” assets, the price of gold broke the $3,500 (£2,613) per ounce barrier and reached a new all-time high. In unstable economic times, the precious metal is thought to be a safer investment option. In addition to tariffs, Susannah Streeter, head of money and markets at Hargreaves Lansdown, stated that the “no long-term resolution in sight for conflicts around the world, particularly in Ukraine and Gaza” has made gold more appealing. “There are also concerns about the risk that geo-political tensions escalate as opportunities in the Arctic are eyed by the US and Russia,” she said.
